11(1)This paragraph applies where by or under, or otherwise in connection with, a PPP agreement a relevant body—
(a)enters into an agreement to grant to a company a lease of, or an easement over, land which consists of or includes the whole or any part of a relevant site; or
(b)grants such a lease or easement to a company.
(2)In this paragraph “relevant site” means—
(a)an industrial building or structure, within the meaning of Part I of the M1Capital Allowances Act 1990; or
(b)land which, in relation to any fixture, within the meaning of Chapter VI of Part II of that Act, is the relevant land for the purposes of that Chapter.
(3)Where this paragraph applies, the relevant body shall be deemed for the purposes of the Corporation Tax Acts to have such an interest in the relevant site in question as is sufficient for the agreement or grant to confer an appropriate interest on the company to which the lease or easement is, or is to be, granted (and the agreement or grant shall accordingly be taken for those purposes to confer such an interest).
(4)For the purposes of sub-paragraph (3) above, an “appropriate interest”—
(a)in the case of a relevant site falling within sub-paragraph (2)(a) above, is such an interest in the industrial building or structure in question as is, or is capable of being, for the purposes of Part I of the M2Capital Allowances Act 1990 the relevant interest (within the meaning of that Part) in relation to capital expenditure incurred by the company; or
(b)in the case of a relevant site falling within sub-paragraph (2)(b) above, is such an interest in the land in question as constitutes for the purposes of Chapter VI of Part II of the M3Capital Allowances Act 1990 an interest in land (within the meaning of that Chapter) by virtue of paragraph (c) or (d), as the case may be, of section 51(3) of that Act.
(5)In this paragraph—
(a)any reference to granting a lease or easement includes a reference to purporting to do so; and
(b)any reference to a grant, or to a lease or easement, shall be construed accordingly.
(6)In this paragraph “lease” includes underlease.