SCHEDULE 5 Leased Assets
Finance Act 2010 (2010 c 13) | Legislation

SCHEDULE 5 Leased Assets

Restriction of qualifying expenditure

1

(1)     In Chapter 17 of Part 2 of CAA 2001 (plant and machinery: anti-avoidance), after section 228M insert—

“Restriction of qualifying expenditure in case of certain leased assets

228MA Restriction of qualifying expenditure

(1)     This section applies where capital expenditure is incurred on the provision of plant or machinery (“the assetâ€) and at the time the expenditure is incurred—

(a)     the asset is leased or arrangements exist under which it is to be leased, and

(b)     arrangements have been entered into in relation to payments under the lease that have the effect of reducing the value of the asset to the lessor (“Vâ€).

(2)     For the purposes of capital allowances the lessor's qualifying expenditure on the asset is restricted to V.

(3)     The value of the asset to the lessor is given by—

V = VI + VR

·É³ó±ð°ù±ð—

VI is the present value of the lessor's income from the asset, and

VR is the present value of the residual value of the asset reduced by the amount of any rental rebate.

(4)     For this purpose—

(a)     the lessor's income from the asset is the total of all the amounts that—

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