If you are thinking about setting up a business, and need it done quickly and easily with no additional requirements, then this package is the perfect choice.
This package is a cheap and efficient way to begin business, and includes the provision of a registered office address in London for the duration of one year.
This package is a not expensive and efficient way to begin business, and includes the provision of a registered office address in London and a nominee secretary for the duration of one year.
This package is one of the most cost effective and the efficient way to start a UK company, which includes a registered office address in London, a nominee secretary, and a nominee director for the duration of one year.
E-quick*
£32.00
Economy
£82.00
Premier
£207.00
Deluxe
£557.00
Usefull links
Further information
Private company limited by shares
No Annual Charges
Private company limited by shares
Annual Fee From: £50.00
Private company limited by shares
Annual Fee From: £175.00
Private company limited by shares
Annual Fee From: £525.00
Usefull links
Further information
Private Company Limited by Shares:
A private company limited by shares in England and Wales must have at least one director, one shareholder, and may have a secretary.
You need at least one person to form this type of company. If there is only one director, and that director is a natural person in your company, that director can also act as the secretary.
A company must have at least one director who is a natural person. This requirement is met if the office of director is held by a natural person as a corporation sole or otherwise by virtue of an office.
You can register a sole director' company, if you are familiar with the secretaries duties and responsibilities, because all of them belongs to a sole director.
The directors and secretary of your company can also be shareholders.
The Companies Act imposes no restriction on the minimum age of company directors. However Companies House will actively discourage the appointment of anyone under the age of 16 from taking up a company directorship on the grounds that the individuals concerned may not fully understand the legal liabilities that go with the position and for the most part will not have the experience necessary to perform the duties of a company director.
Under the Companies Act 2006, there is no restriction on any or all of the members/shareholders being from an overseas country (i.e. outside the United Kingdom in terms of residency, domicile, citizenship, place of incorporation or all or any of those concepts).
There is no requirement for the officers of your company to be UK citizens or residents, nor for them to hold valid work permits.
Owning, or being an officer of a UK company does not, however, grant you any right to live or work in the UK if you are a foreign national.
Your company must have a registered office address within England or Wales; this is the official address of your company and will be on the public record as such.
Your company must hold its official company documents at its registered office address: its register of shareholders, and its constitutional documents.
So long as you maintain a registered office address in England or Wales, you can conduct your business from any place in the world: you do not have to run your business from your registered office address.
Coddan offers company formation, ready-made company registration for UK limited companies.
We offer electronic filing enterprises & registering corporation services. In addition to
business registrations, we offer trademark registration, shareholder agreements, toll-free
numbers, telephone answering, virtual office and company searches for UK limited companies.
You are an accountant for whom company establishment is a frequent activity or an individual
ordering your first company registrations. Start a company by incorporating or forming a LTD,
PLC or LLP at Coddan. Learn about incorporation & how to incorporate your business
online: register a business name, company registration, business registration numbers, company
house web filing - business name registration check. Whether you start-up online, register
London business or form a corporation Scotland, we can help you understand the business start-up
process for filing LTD United Kingdom.
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Incorporate or form an LLC – online: company registrar
United Kingdom, limited company formations & corporation registration, electronically LLC
online, very easy and informative. In addition to private companies Great Britain, we offer
trademark registration, shareholder agreements, 0870 numbers, telephone answering, virtual office and company searches for English companies. Information to help start,
grow or manage a small business. If you are starting a business Edinburgh or starting own business Northern Ireland, read our starting business Republic of Ireland guide.
Home business and small business training and ideas site to help you start Belfast, grow, and expand a home-based business or search for the work at home job right.
An outline of the general steps for incorporation in Great Britain, explaining how to incorporate your business Dublin, from choosing where to incorporate your business.
UK ready-made company formation services and company registrations online, our offices keep a stock of ready made companies, and would be happy to supply details on request.
We offer offshore ready-made companies in different jurisdictions, readymade offshore companies also called as offshore shelf companies, shelf off-shore companies for sale:
starting applying for a business name, business name registration partnership, grants for
starting a business and starting a business from home.
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Open company same-day and offshore setting-up services using our online starting-up service for
Limited Liability Company Offshore companies. Start enjoying the tax benefits and personal
liability protection that forming a corporation or Limited Liability Company (LLC) provides.
Offshore company incorporation, offshore checking and offshore saving accounts, offshore time
deposits, offshore mutual funds, offshore money market accounts and offshore asset protection
provided by Coddan. Company formations, limited company formations, electronic incorporations,
company formation agents, paperless company registrar, electronic companies filing, United
Kingdom limited company, setting corporation Ireland, business incorporation Scotland, open
company England, London company registration, electronic companies filing, British companies
registrars, business consultants, company law, public limited company, plc, international
companies, ltd, inc, limited liability, enterprise, organization, organization, tax, taxation,
England, firm, partnership, trade, profession, contractors, business, private limited company,
limited by shares, ready-made companies, readymade company, aged company, off the shelf
company, shelf companies list.
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Specializes in company registration and secretarial services.
Provides list of shelf company, services and cost quotation, business name registration,
company house direct, starting a business - sole trader business registration.
This is actually a pretty good reason to incorporate in Delaware or Nevada. In fact, you could
be a foreigner from Lebanon, never setting foot on American soil, form a Delaware corporation
and no one would know who you are! However, many states will require the owners and/or officers
and/or directors information while operating in that state (as a foreign corp.). Besides,
how many small businesses require anonymity? Incorporate, incorporation, incorporating,
incorporation services, incorporating services, incorporate Wyoming business online,
incorporating Oregon business, New York LLC formation, Louisiana limited liability corporation,
Texas articles of incorporation, Florida company incorporation, California non profit
corporation, corporate name search offshore, BVI corporate name availability, Seychelles
corporate name registration.
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Learn about incorporation services UK and incorporate London
online: starting your own business, business ideas, starting a business on ebay or buying a
business with legal requirements for starting a business. Online England company formations,
online company London W1 formation, Glasgow formation agent, Liverpool formations agent,
Scottish companies house, forming a company Scotland, starting a business Wales, form a
limited company Oxford, United Kingdom business registration agents, online Great Britain
company registration. E-Business, small business, business structures defined: the limited
liability company business structures defined: the limited liability company IRS treatment of
the one-member LLC. An LLC with only one member / owner is automatically considered to be a
sole proprietorship unless an election is made to be treated as a corporation. Thus, the sole
member of an LLC will file (Form 1040), (U.S. Individual Income Tax Return), ideas for starting
a business, grants for starting a business, starting a business from home, starting your own
business - business ideas, starting a business on ebay, buying a business: legal requirements
for starting a business, ideas for starting a business.
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A business may be conducted by a company
as an entity in its own right and comes into existence by incorporation under companies
legislation which also regulates the running of the company and sets out the duties of its
officers. In recent years trading trusts have been commonly used as the structure for carrying
on a business with their main objective of tax minimization. A trust requires a trustee to act
on behalf of a trust and it has been preferable to have a company newly incorporated to act as
the trustee as it is believed that this limits the liability of the trust to the paid-up capital
of the Trustee Company. A trust is formed by a gift or settlement being made to the trustee on
behalf of the, as yet unformed, trust. A solicitor draws up a Trust Deed setting out the powers
and formalizing the administration of the trust. The trust has beneficiaries rather than
shareholders as in a company, who are entitled to distributions of capital and/or income and
these distributions, are controlled by the trustee.
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The distribution made to beneficiaries are
subject to income tax as part of their personal income and are liable for provisional tax on
these distributions. Citizens and residents of other countries may incorporate in the United
Kingdom through the standard incorporation procedures set forth by each state. Provides UK
company formations, trademark registration, registered office facilities and company secretary
services. Professional company formation, register your company online, we may establish new
business at one day. An online guide to starting up and expanding your business.
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This is one of our most popular packages with worldwide customers, and includes: -
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Our Deluxe package is a fast and easy option, it is ideal for the UK, EU, and international small to medium businesses who wish to appoint a nominee director and a nominee secretary in order to maintain the anonymity of the real owner, and it includes: -
Incorporation of your company from scratch using one of our registered office addresses in London, our nominee director and nominee secretary. We can appoint your own candidate(s) to the role of shareholder(s), or you can appoint a nominee sharholder provided by Coddan;
The standard capital on formation is £1.00, this is divided into 1.00 ordinary share valued at £1.00 (a minimum of one share must be issued);
The formation of a limited company usually takes as little as four to six hours from the time that your application and payment are received by Coddan;
The government fee for incorporation is included in the price of this package;
The provision of a registered office address for 12 months is included in the price of this package (our registered office address service is charged annually);
The provision of a nominee secretary for 12 months is included in the price of this package (our nominee secretary service is charged annually);
The provision of a nominee director for 12 months is also included in the price of this package (our nominee director service is charged annually);
The following two hard bound copies of corporate documents, will be send by post to you upon formation of your private limited company: -
A laminated copy of the certificate of incorporation of your company;
A hard bound copy of the memorandum and articles of association;
A hard bound copy of the minutes of the first meeting of directors;
Share certificates, and your company register;
The general power of attorney signed by a nominee director;
Pre-signed, undated resignation letter from a nominee director;
The agreement for the provision of nominee service and indemnification of nominee.
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This is our most popular package with the UK residents, and includes: -
The registration of your company from scratch using your own registered office address,
and appoint your own candidates to the roles of director, secretary (if needed), and shareholder;
The standard capital on formation is £1.00, this is divided into 1.00 ordinary share valued at £1.00 (a minimum of one share must be issued);
The formation of a limited company usually takes as little as four to six hours from the time that your application and payment are received by Coddan;
The government fee for incorporation is included in the price of this package;
The following documents, which need to be printed and signed, will be e-mailed to you upon formation of your company: -
A certificate of incorporation (requires PDF file reader);
The memorandum & articles of association (requires PDF file reader);
The first meeting of the board of directors (requires PDF file reader);
Share certificates and a company register (requires PDF file reader).
*If you do not have an a valid address in the UK, which can be used as the registered office address for your company, please check our Economy package. The non-UK address cannot be acceptable as the office address for the UK company.
This is our most popular package with the UK and EU residents, and includes: -
The registration your company from scratch using one of our registered office addresses, and appoint your own candidates to the roles of director, secretary (if needed), and shareholder;
The standard capital on formation is £1.00, this is divided into 1.00 ordinary share valued at £1.00 (a minimum of one share must be issued);
The formation of a limited company usually takes as little as four to six hours from the time that your application and payment are received by Coddan;
The government fee for incorporation is included in the price of this package;
The provision of a registered office address for 12 months is also included in the price of this package (our registered office address service is charged annually);
The following documents, which need to be printed and signed, will be e-mailed to you upon formation of your company: -
A certificate of incorporation (requires PDF file reader);
The memorandum & articles of association (requires PDF file reader);
The first meeting of the board of directors (requires PDF file reader);
Share certificates and a company register (requires PDF file reader).
This is another one very popular package with worldwide customers, and includes: -
The formation of a company limited by guarantee usually takes as little as five to seven working days from the time that your application and payment are received by Coddan;
The incorporation your BVI company limited by guarantee from scratch using our registered agent & registered office address, and appoint your own candidate to the role of a members;
The government and initiation fees for incorporation are included in the price of this package;
The search for a company name availability, confirmation, and reservation;
An original certificate of incorporation
A hard bound copy of the memorandum & articles of association
The preparation and submission of the memorandum and articles of association;
A local registered office address and a local registered agent for 12 months are included in the price of this package (our registered agent & office address service are charged annually);
The provision of a nominee director for one year is also included in the price of this package (our nominee director service is charged annually);
To receive an original of the certificate of incorporation from the Companies Registrar usually takes as little as two to three days from the time of incorporation.
The following hard bound copy of corporate documents, will be posted to you upon formation of your company limited by guarantee: -
An original certificate of incorporation;
A hard bound copy of the memorandum and articles of association;
The minutes of the first meeting of the board of directors;
A completed register of directors and members;
An elegant printed membership certificates;
A pliers seal.
The general power of attorney signed by a nominee director (additional fee applies);
Pre-signed, undated resignation letter from a nominee director;
The agreement for the provision of a nominee service and indemnification of nominee.
This is our most popular package with international customers, and includes: -
The formation of a company limited by guarantee usually takes as little as five to seven working days from the time that your application and payment are received by Coddan;
The registration your BVI company limited by guarantee from scratch using our registered agent & registered office address, and appoint our own candidates to the role of a nominee director and a nominee member;
The government and initiation fees for incorporation are included in the price of this package;
The search for a company name availability, confirmation, and reservation;
The preparation and submission of the memorandum and articles of association;
A local registered office address and a local registered agent for one year are included in the price of this package (our registered agent & office address service are charged annually);
The provision of a nominee director for 12 months is included in the price of this package (our nominee director service is charged annually);
A completed register of directors and members
The provision of a nominee member for 12 months is also included in the price of this package (our nominee member service is charged annually);
To receive an original of the certificate of incorporation from the Companies Registrar usually takes as little as two to three days from the time of incorporation.
The following hard bound copy of corporate documents, will be posted to you upon formation of your company limited by guarantee: -
An original certificate of incorporation;
A hard bound copy of the memorandum and articles of association;
The minutes of the first meeting of the board of directors;
A completed register of directors and members;
An elegant printed membership certificates;
A pliers seal.
Pre-signed, undated letters of resignation from a nominee director and a nominee member;
A general power of attorney signed by a nominee director (additional fee applies);
A declaration of trust from a nominee member;
An indemnity letter for the power of attorney;
A nominee agreement which provides for the indemnification of the nominees.
This is another one of our most popular packages for small and medium size businesses, such as those being run by a sole director from home, and for companies owned by overseas residents who still need a local registered office address, but would rather not open a local office in the UK;
This package is often chosen by such customers, who are looking to minimise a sole director' personal liability (and who are not quite familiar with the UK corporate legislation), because this package includes thye provision of a nominee secretary for 12 months. This package is also includes: -
The registration your company from scratch using one of our registered office addresses, and appoint your own candidates to the roles of director, and shareholder;
The standard capital on formation is £1.00, this is divided into 1.00 ordinary share valued at £1.00 (a minimum of one share must be issued);
The formation of a limited company usually takes as little as four to six hours from the time that your application and payment are received by Coddan;
The government fee for incorporation is included in the price of this package;
The provision of a registered office address for 12 months is included in the price of this package (our registered office address service is charged annually);
The provision of a nominee secretary for 12 months is also included in the price of this package (our nominee secretary service is charged annually);
The following hard bound copy of the corporate documents, will be send by post to you, upon formation of your private limited company: -
A laminated copy of the certificate of incorporation of your company;
A hard bound copy of the memorandum and articles of association;
A hard bound copy of the minutes of the first meeting of directors;
Share certificates, and your company register.
This is another one very popular package with worldwide customers, and includes: -
The formation of a limited partnership usually takes as little as five to seven working days from the time that your application and payment are received by Coddan;
The incorporation your BVI offshore limited partnership from scratch using our registered agent & registered office address, and appoint your own candidate to the role of a general partner;
The government and initiation fees for registration are included in the price of this package;
The search for a limited partnership name availability, confirmation, and reservation;
The preparation and submission of the partnership agreement;
A local registered office address and a local registered agent for 12 months are included in the price of this package (our registered agent & office address service are charged annually);
The provision of a nominee limited partner for one year is also included in the price of this package (our nominee limited partner service is charged annually);
To receive an original of the certificate of incorporation from the Companies Registrar usually takes as little as two to three days from the time of incorporation.
The following hard bound copy of corporate documents, will be posted to you upon formation of your offshore company: -
An original certificate of incorporation;
A hard bound copy of the partnership agreement;
The minutes of the first meeting of the board of partners;
A completed register of partners;
An elegant printed membership certificates;
A pliers seal;
The general power of attorney signed by a nominee limited partner (additional fee applies);
Pre-signed, undated resignation letter from a nominee limited partner;
The agreement for the provision of a nominee service and indemnification of nominee.
This is our most popular package with international customers, and includes: -
This is our most popular package with international customers, and includes: -
(1) A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if-
(a) the expenditure is incurred in a chargeable period to which this Act applies, and
(b) the person owns the plant or machinery at some time during that chargeable period.
(2) Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
(3) The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table-
Table
AMOUNT OF FIRST-YEAR ALLOWANCES
Type of first-year qualifying expenditure
Amount
Expenditure qualifying under section 40 (expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises)
100%
Expenditure qualifying under section 44 (expenditure incurred by small or medium-sized enterprises)
40%
Expenditure qualifying under section 45 (ICT expenditure incurred by small enterprises)
100%
(4) A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
(5) Subsection (1) needs to be read with section 236 (first-year allowances in respect of additional VAT liabilities) and is subject to-
section 205 (reduction of first-year allowance if plant or machinery provided partly for purposes other than those of qualifying activity),
section 210 (reduction of first-year allowance if it appears that a partial depreciation subsidy is or will be payable), and
sections 217, 223 and 241 (anti-avoidance: no first-year allowance in certain cases).
Pooling
53
Pooling of qualifying expenditure
(1) Qualifying expenditure has to be pooled for the purpose of determining a person's entitlement to writing-down allowances and balancing allowances and liability to balancing charges.
(2) If a person carries on more than one qualifying activity, expenditure relating to the different activities must not be allocated to the same pool.
54
The different kinds of pools
(1) There are single asset pools, class pools and the main pool.
(2) A single asset pool may not contain expenditure relating to more than one asset.
(3) The following provide for qualifying expenditure to be allocated to a single asset pool-
section 74 (car above the cost threshold);
section 86 (short-life asset);
section 127 (ship);
section 206 (plant or machinery provided or used partly for purposes other than those of qualifying activity);
section 211 (payment of partial depreciation subsidy);
section 538 (contribution allowances: plant and machinery).
(4) A class pool is a pool which may contain expenditure relating to more than one asset.
(5) The following provide for qualifying expenditure to be allocated to a class pool-
section 101 (long-life assets);
section 107 (overseas leasing).
(6) Qualifying expenditure may be allocated to the main pool only if it does not fall to be allocated to a single asset pool or a class pool.
Writing-down and balancing allowances and balancing charges
55
Determination of entitlement or liability
(1) Whether a person is entitled to a writing-down allowance or a balancing allowance, or liable to a balancing charge, for a chargeable period is determined separately for each pool of qualifying expenditure and depends on-
(a) the available qualifying expenditure in that pool for that period ("AQE"), and
(b) the total of any disposal receipts to be brought into account in that pool for that period ("TDR").
(2) If AQE exceeds TDR, the person is entitled to a writing-down allowance or a balancing allowance for the period.
(3) If TDR exceeds AQE, the person is liable to a balancing charge for the period.
(4) The entitlement under subsection (2) is to a writing-down allowance except for the final chargeable period when it is to a balancing allowance.
(5) The final chargeable period is given by section 65.
(6) Subsection (2) is subject to section 110(1) (overseas leasing: allowances prohibited in certain cases).
56
Amount of allowances and charges
(1) The amount of the writing-down allowance to which a person is entitled for a chargeable period is 25% of the amount by which AQE exceeds TDR.
(2) Subsection (1) is subject to-
(a) section 102 (long-life asset expenditure: 6%), and
(b) section 109 (overseas leasing: 10%).
(3) If the chargeable period is more or less than a year, the amount is proportionately increased or reduced.
(4) If the qualifying activity has been carried on for part only of the chargeable period, the amount is proportionately reduced.
(5) A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.
(6) The amount of the balancing charge to which a person is liable for a chargeable period is the amount by which TDR exceeds AQE.
(7) The amount of the balancing allowance to which a person is entitled for the final chargeable period is the amount by which AQE exceeds TDR.
Available qualifying expenditure
57
Available qualifying expenditure
(1) The general rule is that a person's available qualifying expenditure in a pool for a chargeable period consists of-
(a) any qualifying expenditure allocated to the pool for that period in accordance with section 58, and
(b) any unrelieved qualifying expenditure carried forward in the pool from the previous chargeable period under section 59.
(2) A person's available qualifying expenditure in a pool for a chargeable period also includes any amount allocated to the pool for that period under-
section 26(3) (net costs of demolition);
section 86(2) or 87(2) (allocation of expenditure in short-life asset pool);
section 111(3) (overseas leasing: standard recovery mechanism);
section 129(1), 132(2), 133(3) or 137 (provisions relating to operation of single ship pool and deferment of balancing charges in respect of ships);
section 165(3) (abandonment expenditure incurred after cessation of ring fence trade);
section 206(3) (plant or machinery used partly for purposes other than those of the qualifying activity);
(3) A person's available qualifying expenditure does not include any expenditure excluded by-
section 8(4) or 9(1) (rules against double relief);
section 166(2) (transfers of interests in oil fields: anti-avoidance);
section 185(2), 186(2) or 187(2) (restrictions where other claims made in respect of fixture);
section 218(1), 224(1), 228(2), 242(2), or 243(2) (general anti-avoidance provisions).
(4) Subsection (1) is also subject to section 220 (allocation to chargeable periods of expenditure incurred on plant or machinery for leasing under finance lease).
58
Initial allocation of qualifying expenditure to pools
(1) The following rules apply to the allocation of a person's qualifying expenditure to the appropriate pool.
(2) An amount of qualifying expenditure is not to be allocated to a pool for a chargeable period if that amount has been taken into account in determining the person's available qualifying expenditure for an earlier chargeable period.
(3) Qualifying expenditure is not to be allocated to a pool for a chargeable period before that in which the expenditure is incurred.
(4) Qualifying expenditure is not to be allocated to a pool for a chargeable period unless the person owns the plant or machinery at some time in that period.
(5) If a first-year allowance is made in respect of an amount of first-year qualifying expenditure-
(a) subject to subsection (6), none of that amount is to be allocated to a pool for the chargeable period in which the expenditure is incurred, and
(b) the amount that may be allocated to a pool for any chargeable period is limited to the balance left after deducting the first-year allowance.
(6) If-
(a) a first-year allowance is made in respect of an amount of first-year qualifying expenditure,
(b) a disposal event occurs in respect of the plant or machinery in any chargeable period, and
(c) none of the balance left after deducting the first-year allowance has been allocated to a pool for an earlier chargeable period,
the balance (or some of it) must be allocated to a pool for the chargeable period in which the disposal event occurs.
(7) Subsection (6) applies even if the balance is nil (because of a 100% first-year allowance).
(8) "The appropriate pool" means whichever pool is applicable under the provisions of this Part apart from this section.
59
Unrelieved qualifying expenditure
(1) A person has unrelieved qualifying expenditure to carry forward from a chargeable period if for that period AQE exceeds TDR.
(2) The amount of the unrelieved qualifying expenditure is-
(a) the excess less the writing-down allowance made for the period, or
(b) if no writing-down allowance is claimed for the period, the excess.
(3) No amount may be carried forward as unrelieved qualifying expenditure from the final chargeable period.
Disposal events and disposal values: general
60
Meaning of "disposal receipt" and "disposal event"
(1) In this Part "disposal receipt" means a disposal value that a person is required to bring into account in accordance with-
(a) sections 61, 62 and 63 (disposal events, disposal values and the general limit on the amount of a disposal value),
(b) any of the provisions of this Part listed in section 66, or
(c) paragraph 11 of Schedule 12 to FA 1997 (finance lease or loan: receipt of major lump sum) or any other enactment,
when read with sections 64 and 264(3) (cases in which no disposal value need be brought into account).
(2) In this Part "disposal event" means any event of a kind that requires a disposal value to be brought into account under this Part (whether under section 61(1) or otherwise).
(3) If-
(a) qualifying expenditure has been allocated to a pool, and
(b) more than one disposal event occurs in respect of the plant or machinery,
a disposal value is required to be brought into account in the pool in connection with the first event only.
(4) In subsection (3) "disposal event" does not include a disposal event arising under-
section 72 (computer software),
sections 140 and 143 (attribution of deferred balancing charge), or
section 238(2) (additional VAT rebates).
61
Disposal events and disposal values
(1) A person who has incurred qualifying expenditure is required to bring the disposal value of the plant or machinery into account for the chargeable period in which-
(a) the person ceases to own the plant or machinery;
(b) the person loses possession of the plant or machinery in circumstances where it is reasonable to assume that the loss is permanent;
(c) the plant or machinery has been in use for mineral exploration and access and the person abandons it at the site where it was in use for that purpose;
(d) the plant or machinery ceases to exist as such (as a result of destruction, dismantling or otherwise);
(e) the plant or machinery begins to be used wholly or partly for purposes other than those of the qualifying activity;
(f) the qualifying activity is permanently discontinued.
(2) The disposal value to be brought into account depends on the disposal event, as shown in the Table-
Table
DISPOSAL VALUES: GENERAL
1. Disposal event
2. Disposal value
1. Sale of the plant or machinery, except in a case where item 2 applies.
The net proceeds of the sale, together with- (a) any insurance money received in respect of the plant or machinery as a result of an event affecting the price obtainable on the sale, and (b) any other compensation of any description so received, so far as it consists of capital sums.
2. Sale of the plant or machinery where- (a) the sale is at less than market value, (b) there is no charge to tax under Schedule E, and (c) the condition in subsection (4) is met by the buyer.
The market value of the plant or machinery at the time of the sale.
3. Demolition or destruction of the plant or machinery.
The net amount received for the remains of the plant or machinery, together with- (a) any insurance money received in respect of the demolition or destruction, and (b) any other compensation of any description so received, so far as it consists of capital sums.
4. Permanent loss of the plant or machinery otherwise than as a result of its demolition or destruction.
Any 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.
5. Abandonment of the plant or machinery which has been in use for mineral exploration and access at the site where it was in use for that purpose.
Any insurance money received in respect of the abandonment and, so far as it consists of capital sums, any other compensation of any description so received.
6. Permanent discontinuance of the qualifying activity followed by the occurrence of an event within any of items 1 to 5.
The disposal value for the item in question.
7. Any event not falling within any of items 1 to 6.
The market value of the plant or machinery at the time of the event.
(3) The amounts referred to in column 2 of the Table are those received by the person required to bring the disposal value into account.
(4) The condition referred to in item 2 of the Table is met by the buyer if-
(a) the buyer's expenditure on the acquisition of the plant or machinery cannot be qualifying expenditure under this Part or Part 6 (research and development allowances), or
(b) the buyer is a dual resident investing company which is connected with the seller.
(5) In this section "mineral exploration and access" has the same meaning as in Chapter 13 (provisions affecting the mining and oil industries) and Part 5 (mineral extraction allowances).
62
General limit on amount of disposal value
(1) The amount of any disposal value required to be brought into account by a person in respect of any plant or machinery is limited to the qualifying expenditure incurred by the person on its provision.
(2) Subsection (3) applies if a person who is required to bring a disposal value into account has acquired the plant or machinery as a result of a transaction which was, or a series of transactions each of which was, between connected persons.
(3) The amount of the disposal value is limited to the amount of the qualifying expenditure on the provision of the plant or machinery incurred by whichever party to the transaction, or to any of the transactions, incurred the greatest such expenditure.
(4) This section is subject to section 239 (limit on disposal value where additional VAT rebate or rebates has or have been made in respect of original expenditure).
63
Cases in which disposal value is nil
(1) If a person disposes of plant or machinery by way of gift in circumstances such that there is a charge to tax under Schedule E, the disposal value of the plant or machinery is nil.
(2) If a person carrying on a relevant qualifying activity makes a gift of plant or machinery used in the course of the activity-
(a) to a charity within the meaning of section 506 of ICTA (charities: qualifying and non-qualifying expenditure),
(b) to a body listed in section 507(1) of ICTA (various heritage bodies and museums), or
(c) for the purposes of a designated educational establishment within the meaning of section 84 of ICTA (gifts to educational establishments),
the disposal value of the plant or machinery is nil.
(3) In subsection (2) "relevant qualifying activity" means a qualifying activity consisting of-
(a) a trade,
(b) an ordinary Schedule A business,
(c) a furnished holiday lettings business,
(d) an overseas property business, or
(e) a profession or vocation.
(4) Subsection (2) needs to be read with sections 83A(4) and 84(4) of ICTA (which provide for a charge to tax if subsection (2) applies in circumstances in which the donor or a connected person receives a benefit attributable to the gift).
(5) If expenditure is treated under section 27(2) (expenditure on thermal insulation, safety measures, etc.) as having been incurred on plant or machinery, the disposal value of the plant or machinery is nil.
64
Case in which no disposal value need be brought into account
(1) A person is not required to bring a disposal value into account in a pool for a chargeable period in respect of plant or machinery if none of the qualifying expenditure is or has been taken into account in a claim in determining the person's available qualifying expenditure in the pool for that or any previous chargeable period.
(2) Subsection (3) applies if-
(a) a person ("C") has incurred qualifying expenditure on plant or machinery,
(b) C acquired the plant or machinery as a result of a transaction which was, or a series of transactions each of which was, between connected persons,
(c) any connected person (apart from C) who was a party to the transaction, or one of the series of transactions, is or has been required to bring a disposal value into account as a result of the transaction,
(d) a disposal event ("the relevant disposal event") occurs in respect of the plant or machinery at a time when it is owned by C, and
(e) none of C's qualifying expenditure is or has been taken into account in a claim in determining C's available qualifying expenditure for the chargeable period in which the relevant disposal event occurs or any previous chargeable period.
(3) If this subsection applies-
(a) subsection (1) does not apply in relation to the relevant disposal event, and
(b) C's qualifying expenditure is to be treated as allocated to the appropriate pool for the chargeable period in which the relevant disposal event occurs.
(4) In subsection (3)-
(a) "qualifying expenditure" means, if a first-year allowance has been made to C, the amount (including a nil amount) remaining after deducting the allowance, and
(b) "the appropriate pool" means whichever pool is applicable in relation to C under the provisions of this Part.
(5) A person takes expenditure into account in a claim if he takes it into account-
(a) in a tax return;
(b) by giving notice of an amendment of a tax return;
(c) in any other claim under this Part.
The final chargeable period
65
The final chargeable period
(1) The final chargeable period for-
(a) the main pool, or
(b) a long-life asset pool,
is the chargeable period in which the qualifying activity is permanently discontinued.
(2) The final chargeable period for a single asset pool is the first chargeable period in which any disposal event given in section 61(1) occurs.
(3) Subsection (2) is subject to-
sections 77(1) and 206(4) (no final chargeable period merely because plant or machinery begins to be used partly for purposes other than those of qualifying activity);
sections 86(2) and 87(2) (ending of short-life asset pool at four-year cut-off without final chargeable period);
section 132(2) (no final chargeable period for single ship pool).
(4) The final chargeable period for a class pool under section 107 (overseas leasing) is the chargeable period at the end of which the circumstances are such that there can be no more disposal receipts in any subsequent chargeable period.
List of provisions outside this Chapter about disposal values
66
List of provisions outside this Chapter about disposal values
The provisions of this Part referred to in section 60(1)(b) are-
section 68
hire-purchase etc.: disposal value on cessation of notional ownership
sections 72 and 73
grant of new software right: disposal value
section 79
cars: disposal value in avoidance cases
sections 88 and 89
short-life assets: disposal at under-value or to connected person
section 104
long-life assets: avoidance cases
sections 108, 111 and 114
overseas leasing: disposal values in various cases
sections 132 and 143
ships: ship used for overseas leasing etc.; attribution of amount where balancing charge deferred
section 171
oil production sharing contracts: disposal values on cessation of ownership
sections 196 and 197
fixtures: disposal values on cessation of notional ownership and in avoidance cases
section 208
effect of significant reduction in use of plant or machinery for purposes of qualifying activity
section 211
effect of payment of partial depreciation subsidy
section 222
anti-avoidance: limit on disposal value
section 229
hire-purchase: disposal values in finance leasing and anti-avoidance cases
Capital Allowances Act 2001 is reproduced under the terms of Crown Copyright Policy Guidance issued by HMSO. Publishing Rights: Coddan CPM Core Licence (HMSO) number is C02W0007897 issued on 25 November 2005 by HMSO Licensing Division (Core Licence.pdf Licence to reproduce public sector information).
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