Revenue Note for Guidance
534 Disposals of assets
The term “disposal” is not defined. Thus, it must take its ordinary natural meaning, namely, a transfer of ownership in an asset whether by means of sale, gift or otherwise. This section provides that —
- (a) references to a disposal of an asset include references to a part disposal of an asset, except where the context requires otherwise, and
- (b) there is a part disposal where an interest or right in or over an asset is created by the disposal (for example, a sub-lease granted out of a lease) and also, in general, where the person making the disposal retains some form of property derived from the asset, whether a physical part of the asset or an interest in the whole asset.
Special rules apply in calculating the chargeable gain or allowable loss arising on a part disposal – sections 557 and 558 refer.
Relevant Date: Finance Act 2021