Finance Act 2008

Disposal events: grant of long funding lease

4 (1) Section 61 of CAA 2001 (disposal events and disposal values) is amended as follows.

(2) In the second column of the Table in subsection (2), in the entry relating to item 5A, at the end insert “(“the relevant date”)”.

(3) After subsection (5) insert—

“(6) The following provisions apply for the purposes of calculating the disposal value for item 5A of the Table.

(7) Treat any rentals under the lease made (or due) on or before the relevant date as made (and due) on the day after that date.”

(4) After subsection (7) insert—

“(8) Treat the lessor as having no liabilities of any kind at any time on the relevant date (but only if the effect of doing so would be to increase the disposal value).

(9) For the purposes of subsection (8) “liabilities” includes, where the lessor is a company, any share capital issued by the company which falls to be treated for accounting purposes as a liability.”

(5) The amendments made by sub-paragraphs (2) and (3) have effect in relation to leases granted on or after 13 December 2007.

(6) The amendment made by sub-paragraph (4) has effect in relation to leases granted on or after 12 March 2008.