SCHEDULES
SCHEDULE 61Alternative finance investment bonds
Part 3Transactions relating to underlying assets consisting of land
Capital allowances
Treatment for purposes of capital allowances
14
1
This paragraph applies to an asset if—
a
each of conditions A to C is met before the end of the period of 30 days beginning with the effective date of the first transaction, and
b
the asset falls within sub-paragraph (2).
2
An asset falls within this sub-paragraph if it is part of the subject matter of the first transaction and constitutes—
a
plant or machinery, or
F3b
a building or structure (or part of a building or structure).
3
For the purposes of CAA 2001—
a
expenditure incurred by Q in acquiring the asset by virtue of the first transaction is not to be regarded as capital expenditure, and
b
c
in a case within sub-paragraph (2)(b), Q is not to be regarded as acquiring, and P is not to be regarded as ceasing to have, the relevant interest in the asset by virtue of that transaction.
4
Sub-paragraph (3) applies in relation to the transactions mentioned in sub-paragraph (5) as it applies in relation to the first transaction (but reading the references to Q as references to P and the reference to P as a reference to Q).
5
The transactions are—
a
any leaseback agreement entered into by Q and P in order that condition C is met, and
b
the second transaction.
6
This paragraph is subject to paragraphs 15 to 17.