CG15440 - Capital allowances: wasting assets

TCGA92/S44(1)(c) & TCGA92/S45(1)

A wasting asset is an asset with a predictable life not exceeding 50 years, TCGA92/S44(1) (see CG76700+).

The disposal of a wasting asset (or an interest in a wasting asset) which:

  • is tangible moveable property (a chattel), and
  • has never qualified for capital allowances, and
  • hasn鈥檛 been used as plant in another person鈥檚 trade, profession or vocation so as to fall within TCGA92/S45(3B) (see CG76722),

will be an exempt disposal under section 45(1).

Section 44(1)(c) tells you that plant and machinery shall in every case be regarded as having a predictable life of less than 50 years, meaning that plant and machinery are wasting assets. The phrase 鈥減lant and machinery鈥� is not defined in TCGA92. Guidance on determining whether an asset is plant or machinery is available in the Capital Allowances manual at CA21000+.

NOTE if the plant and machinery is:

  • a chattel, and
  • the disposal consideration is less than 拢6,000,

then any gain is exempt by virtue of TCGA92/S262 (chattel exemption) whether or not the asset qualified for capital allowances, see CG76550+.

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