5(1)Sub-paragraph (2) below applies to any disposal (within the meaning of the [F11992 Act]) which is effected, and sub-paragraphs (3) and (4) below apply to any lease which is granted, in pursuance of a provision included in a transfer scheme by virtue of section 68(2) of this Act.
(2)A disposal to which this sub-paragraph applies shall be taken for the purposes of the [F11992 Act] to be effected for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the disponer.
(3)[F2Neither subsection (6)(a) of section 11 of the Capital Allowances Act 1990 (“the 1990 Act”) nor]subsection (6)(a) of section 37 of the M1Finance Act 1978 (capital allowances: long leases) shall . . . F3prevent the application of [F4section 11 or section 37]in any case where the lease is a lease to which this sub-paragraph applies.
(4)Where, in the case of any machinery or plant which is a fixture and on the provision of which for the purposes of the transferor’s trade the transferor incurred capital expenditure, a lease of the relevant land (with or without other land) is a lease to which this sub-pargaraph applies—
(a)the lessor shall not be required to bring the disposal value of the machinery or plant into account in accordance with section 44 of the M2Finance Act 1971 [F5or section 24 of the 1990 Act](writing down allowances and balancing adjustments); and
(b)so far as relating to the bringing of disposal values into account, [F6section 44 of the Finance Act 1971, section 24 of the 1990 Act, Schedule 17 to the Finance Act 1985 and Chapter VI of Part II of the 1990 Act](capital allowances for fixtures) shall have effect as if—
(i)the capital expenditure incurred by the transferor had been incurred by the lessee on the provision of the machinery or plant wholly and exclusively for the purposes of the lessee’s trade; and
(ii)the machinery or plant had become a fixture, immediately after the grant of the lease.
(5)In sub-paragraph (4) above “the transferor” means the transferor under the transfer scheme in question and expressions which are used in Schedule 17 to the Finance Act 1985 [F7or Chapter VI of Part II of the 1990 Act]have the same meaning as in that Schedule [F7or Chapter]; and in construing that sub-paragraph the provisions of section 511(2) of the 1988 Act and the corresponding earlier enactments shall be disregarded.
Textual Amendments
F1Words in Sch. 11 para. 5 substituted (6.3.1992 with effect for the year 1992-93 and subsequent years of assessment) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 20(3)
F2Words inserted by Capital Allowances Act 1990 (c. 1, SIF 63:1), s. 164(3), Sch. 1 para. 11(a)
F3Word repealed by Capital Allowances Act 1990 (c. 1, SIF 63:1), s. 164(4)(5), Sch. 2
F4Words substituted by Capital Allowances Act 1990 (c. 1, SIF 63:1), s. 164(3), Sch. 1 para. 11(a)
F5Words inserted by Capital Allowances Act 1990 (c. 1, SIF 63:1), s. 164(3), Sch. 1 para. 11(b)
F6Words substituted by Capital Allowances Act 1990 (c. 1, SIF 63:1), s. 164(3), Sch. 1 para. 11(c)
F7Words inserted by Capital Allowances Act 1990 (c. 1, SIF 63:1), s. 164(3), Sch. 1 para. 11(d)
Marginal Citations