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.