SCHEDULES

SCHEDULE 12 U.K. Leasing arrangements: finance leases and loans

Part I U.K. Leasing arrangements where any of the return on investment is in capital form

Assignments on which neither a gain nor a loss accrues U.K.

7 (1) This paragraph applies in any case where— U.K.

(a) the current lessor assigns the lessor’s interest under the lease; and

(b) the assignment is a disposal on which, by virtue of any of the enactments specified in section 35(3)(d) of the M1 Taxation of Chargeable Gains Act 1992, neither a gain nor a loss accrues.

(2) Where this paragraph applies, this Schedule shall have effect as if—

(a) a period of account of the assignor ended, and

(b) a period of account of the assignee began,

with the assignment.

(3) Where this paragraph applies—

(a) any unused cumulative accountancy rental excess, or

(b) any unused cumulative normal rental excess,

of the assignor shall become the cumulative accountancy rental excess or the cumulative normal rental excess (as the case may be) for the period of account of the assignee which begins with the assignment.

(4) In sub-paragraph (3) above—

• “unused cumulative accountancy rental excess”, in relation to the assignor, means the aggregate of—

  (a)

  any cumulative accountancy rental excess, and

  (b)

  any accountancy rental excess,

  for the period of account of his which ends with the assignment;

• “unused cumulative normal rental excess”, in relation to the assignor, means the aggregate of—

  (a)

  any cumulative normal rental excess, and

  (b)

  any normal rental excess,

  for the period of account of his which ends with the assignment.

Marginal Citations

M1 1992 c. 12.