Capital Allowances Act 2001

[F1 368 Provisions applying on ending of lease U.K.

(1) This section applies if—

(a) a lease which is the relevant interest comes to an end, and

(b) section 367(1) does not apply.

(2) If a new lease of the whole or a part of the related agricultural land is granted to the same lessee, the lessee is to be treated as continuing to have the same relevant interest in the whole of the related agricultural land.

(3) If—

(a) a new lease of the whole or a part of the related agricultural land is granted to a different lessee, and

(b) that lessee (“the incoming lessee”) makes a payment to the outgoing lessee in respect of assets representing the qualifying expenditure,

the incoming lessee is to be treated as acquiring the relevant interest in the whole of the related agricultural land.

(4) In any other case, the former lease and the interest of the lessor under it are to be treated as the same interest; and so the relevant interest in the whole of the related agricultural land is to be treated as acquired by the lessor.]

Textual Amendments

F1 Pt. 4 omitted (with effect in relation to chargeable periods beginning on or after 1.4.2011 for corporation tax purposes and 6.4.2011 for income tax purposes in accordance with ss. 84(1)(3)(4), 85 of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 84(2) (with Sch. 27)