Capital-allowance disposals

How disposal values enter pools and can create balancing charges.

Disposal value is capped at original cost

Reviewed · Current · Law · Current reviewed treatment; earlier start date not yet established

The disposal value brought into a pool cannot exceed the qualifying expenditure incurred on the asset.

A disposal can reduce a pool or create a balancing charge. Missing disposal evidence can therefore make a draft tax result too low, not merely conservative.

Exceptions and branches

• Market-value and connected-party rules may determine the disposal value before the cost cap.

Related concepts

• Capital allowances

• Writing-down and small-pool allowances

• Fixed-asset register

Linked from

• Capital allowances

• Writing-down and small-pool allowances

• Fixed-asset register

Sources

• Capital Allowances Act 2001, section 62 — Section 62(1). Primary authority.

How sources are ranked

Knowledge version: sterling-knowledge@2026-09-11.7. Last checked 11 September 2026.