Annex 1: Minor Changes in the Law Change 104: Amendments of CAA: Schedule 1 Sections 108, 112 and 115 of CAA
Before ITTOIA section 108(1)(b) of CAA said “the disposal is not an occasion on which the qualifying activity is treated as continuing under any of the relevant provisions of ICTA”. That condition can be satisfied if there is a disposal of the plant and machinery without a change in the persons carrying on the qualifying activity.
The condition in section 108(1)(b)(i), as substituted by ITTOIA, can only be satisfied if there is a change in the persons carrying on the qualifying activity.
The amendments of section 108 made by this Act, so far as relating to income tax, aim to reverse the inadvertent change in the law that resulted from the amendment made by ITTOIA.
There is also a need to reverse changes of a similar nature, again so far as relating to income tax, that resulted from the amendments by ITTOIA of sections 112 and 115 of CAA.