SCHEDULES

SCHEDULE 7 Transfer schemes relating to BBC transmission network: taxation provisions

Corporation tax: leased assets

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1

For the purposes of F1Chapter 4 of Part 19 of the Corporation Tax Act 2010 (assets leased to traders and others) F5and Chapter 4 of Part 12A of the Income Tax Act 2007 (which makes corresponding provision), where the interest of the lessor or the lessee under a lease, or any other interest in F2a relevant asset, is transferred in accordance with a transfer scheme to the BBC or a transferee, the transfer shall be treated as being effected without any capital sum having been obtained in respect of that interest by the BBC or the transferee.

2

F3Section 865 of the Corporation Tax Act 2010 (deduction of payment under F6lease of trading asset), and section 681CC of the Income Tax Act 2007 (which makes corresponding provision), shall not apply to any payments made by the BBC or a company which is a transferee under a transfer scheme if the payments are made—

a

under any lease created in favour of the BBC or such a company by virtue of, or in pursuance of an obligation imposed by, a provision contained in a transfer scheme by virtue of paragraph 2 of Schedule 5; or

b

under any lease—

i

which is granted to or by a successor company at a time when it remains a wholly-owned subsidiary of the BBC; and

ii

which is a lease of F4a relevant asset which at any time before the creation of the lease was used by the BBC for the purposes of a trade carried on by the BBC and which was, when so used, owned by the BBC.

F73

In sub-paragraph (1)—

  • “lease” has the meaning given by section 884 of the Corporation Tax Act 2010 or section 681DN of the Income Tax Act 2007, and

  • “relevant asset” has the meaning given by section 885 of the Corporation Tax Act 2010 or section 681DO of the Income Tax Act 2007.