[F191F(1)This paragraph applies if sub-paragraph (2) of paragraph 91A ceases to have effect in relation to a lease (the “existing lease”) because one or more of the conditions in sub-paragraph (3) of that paragraph cease to be met.U.K.
(2)In any such case it is to be assumed for tax purposes that—
(a)the existing lease terminates at the time of the cessation;
(b)another lease (the “new lease”) is entered into immediately after the cessation;
(c)the term of the new lease is the portion of the term of the existing lease that remains unexpired at the time of the cessation;
(d)the date on which the cessation occurs is the date of both—
(i)the inception of the new lease, and
(ii)the commencement of the term of the new lease.
(3)Where this paragraph applies, subsection (4) of section 70X of the Capital Allowances Act 2001 (transfers, assignments etc by lessee) does not.
(4)For the purposes of this paragraph, the following expressions have the meaning given in Chapter 6A of Part 2 of the Capital Allowances Act 2001 (interpretation of provisions about long funding leases)—
“commencement”, in relation to the term of a lease;
“inception”, in relation to a lease;
“term”, in relation to a lease;
“terminate”.]
Textual Amendments
F1Sch. 22 paras. 91A-91F and cross-heading inserted (with effect in accordance with Sch. 8 para. 15 and Sch. 9 para. 10(5) to the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 10(3)