No chargeable gain or allowable loss accrues on the disposal of (or of an interest in) an asset which is a chattel (ie tangible movable property) and which is a wasting asset1.
The exemption extends to interests in such assets which would include leases as well as part interests. A lease of a wasting chattel is therefore not generally a chargeable asset, being an interest in a wasting chattel2.
See C3.1811 for discussion of the meaning of 'movable'.
Exceptions to the exemption
The exemption for wasting chattels is subject to exceptions. On a disposal which is not exempt, a chargeable gain or allowable loss may arise, but this will be subject to the exemption for disposals of chattels where the consideration does not exceed £6,000 and to the associated marginal relief (see C3.1811). If the exemption does not apply because the asset is eligible in full for capital allowances (see below), the restriction on allowable expenditure at C2.902 does not apply (see further C2.906).
Where a wasting chattel is only partially exempt because
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