Introduction Background Note
7.Capital gains tax applies to gains accruing on the disposal of assets. However, a gain or loss which arises on the disposal of certain wasting assets is exempt from capital gains tax. This includes plant or machinery where capital allowances cannot be claimed.
8.This amendment is designed to make clear that the exemption applies for assets used as plant in a business only where the asset has been used by a disponor as plant for the purposes of his own business. It closes a loophole that allows a person who plans to dispose of an asset to claim the exemption if a third party uses the asset as plant in their business.