Generally, the UCC is equal to the total capital cost of all the depreciable property of the class minus the capital cost allowance (CCA) you claimed in previous years. This means that the CCA you claim each year reduces the UCC of the property.

If you sell depreciable property in a year, you also have to subtract from the UCC one of the following two amounts, whichever is less:

• the proceeds of disposition of the property minus the related outlays and expenses
• the capital cost of the property