Taxes Consolidation Act 1997 section 318

Meaning of "sale, insurance, salvage or compensation moneys"

Section 318 defines the term "sale, insurance, salvage or compensation moneys" as used throughout Part 9, which deals with capital allowances for machinery, plant, and industrial buildings.

• The term covers the net sale proceeds where an asset is sold, or the consideration received where a right to use or deal with computer software is granted.
• Where an asset is demolished or destroyed, it includes the net amount received for the remains (such as scrap value), together with any insurance moneys or capital compensation received.
• Where machinery or plant is permanently lost (for example, stolen) otherwise than by demolition or destruction, it includes any insurance moneys or capital compensation received for the loss.
• Where an industrial building or structure ceases to be used altogether, or ceases to be a relevant facility, it includes capital compensation received or, in the case of a relevant facility, the aggregate of the residue of expenditure and allowances already granted.