CG15451 - Capital allowances: wasting assets qualifying for

TCGA92/S45 (2), TCGA92/S47 (1) & TCGA92/SCH8/PARA1 (6)

If an asset is a wasting asset and it has qualified for capital allowances throughout the period of ownership then

• there is no restriction of allowable expenditure under either TCGA92/S46 or TCGA92/SCH8/PARA1, and
• TCGA92/S41 applies in the normal way to restrict losses.

In other words the asset is treated as if it were not a wasting asset. However if the asset is a chattel the provisions of Section 262 will apply, see CG76550+.