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Finance Act 2009

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Changes over time for: Paragraph 16

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Changes to legislation:

Finance Act 2009, Paragraph 16 is up to date with all changes known to be in force on or before 28 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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16(1)This paragraph applies to an asset if the first and second conditions are met.U.K.

(2)The first condition is that the asset is part of the subject matter of the first transaction and constitutes—

(a)plant or machinery, or

[F1(b)a building or structure (or part of a building or structure).]

(3)The second condition is that Q—

(a)ceases to hold the asset as a bond asset (whether at the end of the bond term or at any other time), but

(b)does not transfer the asset to P or any other person.

(4)At the time that Q ceases to hold the asset as a bond asset [F2

(a)in a case within sub-paragraph (2)(a), Q is to be treated as becoming, and P is to be treated as ceasing to be, the owner of the asset, and

(b)in a case within sub-paragraph (2)(b), Q is to be treated as acquiring, and P is to be treated as ceasing to have, the relevant interest in the asset].

(5)Accordingly, Q's ceasing to hold the asset as a bond asset is to be treated—

(a)as regards plant or machinery, as a disposal event (in relation to P) occurring in the chargeable period in which the cessation takes place, F3...

F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)For the purposes of sub-paragraph (5)—

(a)in the case falling within paragraph (a), the disposal value that P is required to bring into account is the market value of the asset at the time of the transfer, F4...

F4(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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