From 2017/18 a CGT exemption applies for certain disposals under, or after leaving, the cash basis. When a taxpayer enters the cash basis, any capital allowances pool balance is written off and capital allowances are not available while a cash basis election is in force (see B3.333).
No chargeable gain accrues on the disposal of, or of an interest in, an asset used in a cash basis business, but on which capital allowances had previously been claimed, if the following three conditions are met1:
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•ÌýÌýÌýÌý The asset is not land.
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•ÌýÌýÌýÌý The asset has been used at any time during the period of ownership by the person making the disposal for the purposes of a trade, profession, vocation or property business.
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•ÌýÌýÌýÌý The disposal proceeds of the asset are brought into account as a capital receipt in calculating the profits of the business as
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