108 Effect of disposal to connected person on overseas leasing poolU.K.
(1)This section applies if—
(a)a person who has incurred qualifying expenditure which has been allocated to an overseas leasing pool disposes of the plant or machinery to a connected person,
[F1(b)the disposal is one on the occasion of which—
(i)there was a change in the persons carrying on the qualifying activity which involved all of the persons carrying on that activity before the change permanently ceasing to carry it on, or
(ii) the qualifying activity carried on by the person making the disposal was not treated as continuing under section 114(1) or 343(2) of ICTA (effect of partnership changes involving companies or of company reconstructions), and ]
(c)a disposal value is required to be brought into account on that occasion under this Part.
(2)The disposal value to be brought into account is—
(a)the market value of the plant or machinery at the time of the disposal, or
(b)if less, the qualifying expenditure incurred by the person disposing of the plant or machinery.
(3)The person acquiring the plant or machinery is to be treated for the purposes of this Part as having incurred expenditure on its provision of an amount equal to the disposal value given by subsection (2).
F2(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 108(1)(b) substituted for s. 108(1)(b) (with effect in accordance with s. 883(1) of the amending Act)) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 537(2) (with Sch. 2)
F2S. 108(4) repealed (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 537(3), 3 (with Sch. 2)