SCHEDULES

SCHEDULE 47Controlled foreign companies

Relevant finance leases etc

4

1

Section 371EE (leases to UK resident companies etc) is amended as follows.

2

In subsection (2)(b)(i) for “which is the subject of the lease” substitute “ (“the relevant asset”) which is the subject of the lease or making (directly or indirectly) an arrangement which would fall within subsection (3) ”.

3

After subsection (2) insert—

3

An arrangement would fall within this subsection if—

a

the arrangement would meet one or both of the following requirements—

i

it would not be a relevant finance lease;

ii

it would not involve the CFC, and

b

under the arrangement the other company would (directly or indirectly) purchase rights to use the relevant asset.