On the disposal of an asset of a class, there may be a recapture of capital cost allowance (CCA) if the undepreciated capital cost (UCC) at the end of the taxation year, before taking into account the disposition, is less than the lesser of the proceeds of disposition or the capital cost of the asset.
A recapture of CCA can occur even while other assets remain in the class.
The recapture of CCA represents excessive claims of CCA in earlier taxation years and is included in full in the business or property income to which the class relates to.
Recapture of CCA may be avoided or reduced if new property of the same class is purchased in the same taxation year.