{
  "url": "https://openlegislation.uk/capital-allowances-act-2001/section-196",
  "json_url": "https://openlegislation.uk/capital-allowances-act-2001/section-196.json",
  "legislation": "ukpga/2001/2",
  "legislation_title": "Capital Allowances Act 2001",
  "legislation_url": "https://openlegislation.uk/capital-allowances-act-2001",
  "path": "section/196",
  "kind": "section",
  "number": "196",
  "heading": "Disposal values in relation to fixtures: general",
  "text": "(1) The disposal value to be brought into account in relation to a fixture depends on the nature of the disposal event, as shown in the Table—\nTable\nDisposal values: fixtures\n1. Disposal event\n2. Disposal value\n1. Cessation of ownership of the fixture under section 188 because of a sale of the qualifying interest except where item 2 applies.\nThe part of the sale price that—\n(a)falls to be treated for the purposes of this Part as expenditure incurred by the purchaser on the provision of the fixture, or\n(b)would fall to be so treated if the purchaser were entitled to an allowance.\n2. Cessation of ownership of the fixture under section 188 because of a sale of the qualifying interest where—\n(a)the sale is at less than market value, and\n(b)the condition in subsection (2) is met by the purchaser.\nThe part of the price that would be treated for the purposes of this Part as expenditure by the purchaser on the provision of the fixture if—\n(a)the qualifying interest were sold at market value,\n(b)that sale took place immediately before the event which causes the former owner to be treated as ceasing to be the owner of the fixture, and\n(c)that event were disregarded in determining that market value.\n3. Cessation of ownership of the fixture under section 188 where—\n(a)neither item 1 nor 2 applies, but\n(b)the qualifying interest continues in existence after that time or would so continue but for its becoming merged in another interest.\nThe disposal value given for item 2.\n4. Cessation of ownership of the fixture under section 188 because of the expiry of the qualifying interest.\nIf the person receives a capital sum, by way of compensation or otherwise, by reference to the fixture, the amount of the capital sum.\nIn any other case, nil.\n5. Cessation of ownership of the fixture under section 190 because the lessee has become the owner under section 183.\nThe part of the capital sum given by the lessee for the lease referred to in section 183 that falls to be treated for the purposes of this Part as the lessee’s expenditure on the provision of the fixture.\n6. Cessation of ownership of the fixture under section 191 (severance).\nThe market value of the fixture at the time of the severance.\n7. Cessation of ownership of the fixture because section 192(2)(a) (assignment of rights) applies.\nThe consideration given by the assignee for the assignment.\n8. Cessation of ownership of the fixture because section 192(2)(b) (discharge of equipment lessee’s obligations) applies on the payment of a capital sum.\nThe capital sum paid to discharge the financial obligations of the equipment lessee.\n8A. Cessation of ownership of the fixture because section 192A(2)(a)(assignment of rights) applies.\nThe consideration given by the assignee for the assignment.\n8B. Cessation of ownership of the fixture because section 192A(2)(b) (discharge of client’s obligations) applies on the payment of a capital sum.\nThe capital sum paid to discharge the financial obligations of the client.\n9. Permanent discontinuance of the qualifying activity followed by the sale of the qualifying interest.\nThe part of the sale price that—\n(a)falls to be treated as expenditure incurred by the purchaser on the provision of the fixture, or\n(b)would fall to be so treated if the purchaser were entitled to an allowance.\n10. Permanent discontinuance of the qualifying activity followed by the demolition or destruction of the fixture.\nThe net amount received for the remains of the fixture, together with—\n(a)any insurance money received in respect of the demolition or destruction, and\n(b)any other compensation of any description so received, so far as it consists of capital sums.\n11. Permanent discontinuance of the qualifying activity followed by the permanent loss of the fixture otherwise than as a result of its demolition or destruction.\nAny insurance money received in respect of the loss and, so far as it consists of capital sums, any other compensation of any description so received.\n12. The fixture begins to be used wholly or partly for purposes other than those of the qualifying activity.\nThe part of the price that would fall to be treated for the purposes of this Part as expenditure incurred by the purchaser on the provision of the fixture if the qualifying interest were sold at market value.\n(2) The condition referred to in item 2 of the Table is met by the purchaser if—\n(a) the purchaser’s expenditure on the provision of the fixture cannot be qualifying expenditure under this Part or Part 6 (research and development allowances), or\n(b) the purchaser is a dual resident investing company which is connected with the former owner.\n(3) Items 1 and 5 of the Table are subject to sections 198 and 199 (election to fix apportionment on sale of qualifying interest or grant of lease).\n(4) Section 192(3) (assignee of equipment lessee) applies in relation to item 8 of the Table.\n(4A) Section 192A(3)(assignee of client) applies in relation to item 8B of the Table.\n(5) Nothing in sections 188 to 192A or this section prevents a disposal value having to be brought into account under Chapter 5 because of a disposal event not dealt with in these sections.\n(6) This section is subject to section 197.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 196(1) Table, items 8A, 8B inserted (with effect as mentioned in s. 66 of the amending Act) by Finance Act 2001 (c. 9), s. 66, Sch. 18 para. 10(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 196(4A) inserted (with effect as mentioned in s. 66 of the amending Act) by Finance Act 2001 (c. 9), s. 66, Sch. 18 para. 10(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 196(5) substituted (with effect as mentioned in s. 66 of the amending Act) by Finance Act 2001 (c. 9), s. 66, Sch. 18 para. 10(4)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 196 excluded (E.W.S.) (8.6.2005) by Railways Act 2005 (c. 14) , s. 60(2) , Sch. 10 para. 14(2)(a) ; S.I. 2005/1444 , art. 2(1) , Sch. 1"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "S. 196 modified (E.W.S.) (8.6.2005) by Railways Act 2005 (c. 14) , s. 60(2) , Sch. 10 para. 3 ; S.I. 2005/1444 , art. 2(1) , Sch. 1"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "S. 196 modified (E.W.S.) (24.7.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 23; S.I. 2005/1909, art. 2, Sch."
    },
    {
      "type": "C",
      "label": "C4",
      "text": "Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19"
    },
    {
      "type": "C",
      "label": "C5",
      "text": "Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35"
    },
    {
      "type": "C",
      "label": "C6",
      "text": "S. 196 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 20(2)"
    },
    {
      "type": "C",
      "label": "C7",
      "text": "Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37"
    },
    {
      "type": "C",
      "label": "C8",
      "text": "S. 196 modified (7.8.2015) by The Housing and Regeneration Transfer Schemes (Tax Consequences) Regulations 2015 (S.I. 2015/1540), regs. 1, 8(2) (with regs. 3, 8(1)(6))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2001/2/section/196",
    "retrieved_at": "2026-10-29T09:20:17.739129+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}