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Finance Act 2006

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Changes over time for: Cross Heading: Pre-existing heads of agreement relating to two or more assets

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Pre-existing heads of agreement relating to two or more assetsU.K.

20(1)This paragraph has effect for the purposes of this Part in any case where the pre-existing heads of agreement relates to two or more assets.U.K.

(2)The treatment of any of the assets varies according to whether the asset—

(a)is for use individually (see sub-paragraph (3)), or

(b)is a constituent asset of a combined asset (see sub-paragraph (4)).

(3)Where any of the assets is for use individually, this Part has effect in relation to that asset separately, as if it were the subject of—

(a)its own separate pre-existing heads of agreement, and

(b)if there is a finalised lease, its own separate finalised lease.

See sub-paragraph (5) for the method of determining the terms.

(4)Where any of the assets are constituent assets of a combined asset—

(a)the combined asset is to be regarded as a single asset, and

(b)the constituent assets are to be regarded as if they were instead component parts of that single asset,

and sub-paragraph (3) applies accordingly.

(5)For the purposes of sub-paragraph (3), the principles in sections 70L and 70M of CAA 2001 are to be applied, with any necessary modifications, for the purpose of determining the terms of—

(a)the deemed separate pre-existing heads of agreement, and

(b)the deemed separate finalised lease (if any).

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