Sections 214 to 216: Connected persons, transactions to obtain allowances, and sale and leaseback etc.
793.These three sections are based on parts of section 75(1), (2) and (3) and 76(1) of CAA 1990. They give the three types of relevant transaction which lead to restrictions on allowances:
between connected persons;
to obtain allowances; and
sale and leaseback (and so on).
794.“Connected persons” for this purpose are defined in section 232.
795.Section 216 identifies sale and leaseback type transactions in subsection (1)(b):
paragraph (i) is the basic case dealt with in section 75 of CAA 1990 (which applies if an asset has been used in the seller’s business and continues to be so used after the sale); and
paragraph (ii) covers the circumstances dealt with in section 76(1) of CAA 1990 (which applies if the asset is used by a connected person or there is not necessarily continuity of use in S’s business).
