Show download pdf controls
  • CGT and depreciating assets



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The uniform capital allowance system (UCA) applies from 1 July 2001. Unlike the previous capital allowance regime for plant which operated prior to 1 July 2001, a capital gain or capital loss from the disposal of a depreciating asset will only arise to the extent that a depreciating asset has been used for a non-taxable purpose (for example, used privately).

    A capital gain or capital loss is calculated using the UCA concepts of cost and termination value and not those found in the CGT provisions (capital proceeds and cost base).

    A CGT event (CGT event K7) happens if a balancing adjustment event occurs for a depreciating asset you held, and at some time during the period you held it, you used it for a non-taxable purpose.

    A balancing adjustment event most commonly occurs for a depreciating asset if you stop holding it (for example, you sell, lose or destroy it) or stop using it.

    Last modified: 25 Feb 2020QC 27448