Part 2

Plant and machinery allowances
Chapter 6A

Interpretation of provisions about long funding leases
Transfers, assignments, novations, leaseback, variations
etc

Transfers, assignments etc by lessee
70X
1
This section applies in any case where the following conditions are met—
a
a person (the “old lessee”) is lessee of plant or machinery under a plant or machinery lease (the “old lease”),
b
during the term of the lease, the old lessee transfers the plant or machinery to another person (the “new lessee”),
c
the transfer is not the grant of a plant or machinery lease by the old lessee,
d
immediately after the transfer, the new lessee is the lessee of the plant or machinery under a lease (“
the new lease
”) (whether or not the same lease as the old lease).
2
If it is not otherwise the case,—
a
the old lessee is to be treated as if the old lease terminated immediately before the transfer, and
b
the new lessee is to be treated as if the new lease had been entered into immediately after the transfer.
3
The new lessee is also to be treated as if the date of the transfer were the date of both—
a
the inception of the new lease, and
b
the commencement of the term of the new lease,
if it is not otherwise the case.
4
If, immediately before the transfer, the old lease was (or was treated by virtue of this subsection as being) in the case of the old lessee a lease of one of the following descriptions—
a
a long funding lease, or
b
a lease which is not a long funding lease,
the new lease is to be treated in the case of the new lessee as being a lease of the same description, if the conditions in subsection (5) are met.
5
The conditions are that—
a
the term of the new lease is the unexpired portion of the term of the old lease, and
b
the amounts payable under the new lease are the same as would have been payable under the old lease, assuming it to have continued in effect.
6
If—
a
it is not otherwise the case, and
b
the conditions in subsection (5) are met,
the lessor is to be treated as if the old lease and the new lease were the same continuing lease.
7
Any reference in this section to a transfer of plant or machinery by a person includes a reference to—
a
any kind of disposal of, or of the person's interest in, the plant or machinery,
b
any arrangements under which the person's interest in the plant or machinery is terminated and another person becomes lessee of the plant or machinery,
c
in a case where the plant or machinery is a fixture and the person is treated under section 176 as the owner, any cessation of ownership under section 188, 190, 191, 192 or 192A.
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 Ch. 6A inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 7
Pt. 2 Ch. 6A applied (21.7.2008) by Finance Act 2008 (c. 9), Sch. 20 para. 11(12)
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 Ch. 6A applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 33 para. 9(c)
Pt. 2 Ch. 6A applied (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 381(1), 1184(1) (with Sch. 2)
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)
Pt. 2 Ch. 6A modified (10.6.2021) by Finance Act 2021 (c. 26), s. 17