Part 2 Plant and machinery allowances

F1Chapter 6AInterpretation of provisions about long funding leases

Excluded leases of background plant or machinery for a building

70SThe disqualifications

(1)

This section sets out the disqualifications mentioned in subsection (2)(d) of section 70R and is to be construed as one with that section.

(2)

Disqualification A is that the amounts payable—

(a)

under the mixed lease, or

(b)

under any other arrangement,

vary, or may be varied, by reference to the value from time to time to the lessor of allowances under this Act in respect of expenditure incurred by him in the provision of the background plant or machinery for the building.

(3)

Disqualification B is that the main purpose, or one of the main purposes, of entering into—

(a)

the mixed lease,

(b)

a series of transactions of which the mixed lease is one, or

(c)

any of the transactions in such a series,

is to secure that allowances under this Act are available to the lessor in respect of expenditure incurred in the provision of background plant or machinery for a building.