SCHEDULES
SCHEDULE 61Alternative finance investment bonds
Part 3Transactions relating to underlying assets consisting of land
Capital allowances
17Q transferring asset to third person
1
This paragraph applies to an asset if the first and second conditions are met.
2
The first condition is that the asset is part of the subject matter of the first transaction and constitutes—
a
plant or machinery, or
b
an industrial building (or part of an industrial building).
3
The second condition is that Q transfers the asset to any person other than P.
4
At the time that Q transfers the asset, that other person is to be treated as becoming, and P is to be treated as ceasing to be, the owner of the asset.
5
Accordingly, the transfer is to be treated—
a
as regards plant or machinery, as a disposal event (in relation to P) occurring in the chargeable period in which the transfer takes place, and
b
as regards an industrial building or part of an industrial building, as a balancing event (in relation to P) occurring in the chargeable period in which the transfer takes place.
6
For the purposes of sub-paragraph (5)—
a
in the case falling within paragraph (a), the disposal value that P is required to bring into account is the market value of the asset at the time of the transfer, and
b
in the case falling within paragraph (b), P is to be treated as receiving, as the proceeds of the balancing event, the market value of the asset at the time of the transfer.