Part 19 Sale and lease-back etc

Chapter 4 Leased assets: capital sums

Obtaining of sum

879 Disposal 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).