23(1)Section 779 of the Taxes Act 1988 (sale and lease back) shall not apply by virtue of subsection (1) or (2) of that section in any case where the liability of the transferor, or of the person associated with the transferor, is—U.K.
(a)a liability under an access agreement, within the meaning of Part I of the M1Railways Act 1993;
(b)a liability under an agreement or instrument made or executed—
(i)pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of that Act; or
(ii)pursuant to paragraph 2 of Schedule 8 to that Act;
(c)a liability under an exempt lease; or
(d)a liability to pay exempt rent or to make other exempt payments.
(2)A lease is “exempt” for the purposes of sub-paragraph (1)(c) above if—
(a)the transfer mentioned in subsection (1) of section 779 of the Taxes Act 1988 is—
(i)a transfer by virtue of a restructuring scheme;
(ii)a transfer pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the M2Railways Act 1993; or
(iii)a transfer pursuant to paragraph 2 of Schedule 8 to that Act; and
(b)the lease is granted after that transfer and otherwise than pursuant to—
(i)an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the M3Railways Act 1993; or
(ii)paragraph 2 of Schedule 8 to that Act.
(3)Rent or other payments are “exempt” for the purposes of paragraph (d) of sub-paragraph (1) above if—
(a)the rent or other payments would, apart from that paragraph, be rent or other payments to which section 779 of the Taxes Act 1988 applies by virtue of subsection (1) or (2) of that section;
(b)the transfer mentioned in subsection (1) or, as the case may be, subsection (2)(a) of that section is—
(i)a transfer by virtue of a restructuring scheme;
(ii)a transfer pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the M4Railways Act 1993; or
(iii)a transfer pursuant to paragraph 2 of Schedule 8 to that Act; and
(c)the transaction or series of transactions mentioned in subsection (1)(b) or, as the case may be, subsection (2)(b) of the said section 779 is effected after that transfer.
(4)In this paragraph “transferor”, “lease” and “rent” have the same meaning as they have in section 779 of the Taxes Act 1988 and “associated” shall be construed in accordance with subsection (11) of that section.