Part 19Sale and lease-back etc

Chapter 4Leased assets: capital sums

Obtaining of sum

879Disposal of interest to associate

1

This section applies for the purposes of this Chapter if a company disposes of an interest in an asset to a person who is the company's associate (and the interest may be the lessee's interest in a lease of the asset or the lessor's interest or any other interest).

2

The company disposing of the interest must be treated as obtaining in respect of it the greatest of—

a

the sum in fact obtained by the company,

b

the value of the interest in the open market, and

c

the value of the interest to the person to whom it is in effect transferred.

3

The disposal—

a

may be direct or indirect, and

b

may be effected by a transaction or series of transactions described in section 877(b) or 878(3).