Version Superseded: 01/04/2010
Point in time view as at 19/07/2006.
There are currently no known outstanding effects for the Finance Act 1997, Cross Heading: Application of this Part of this Schedule.
16(1)This Part of this Schedule applies in any case where—U.K.
(a)a lease of an asset is or has been granted on or after 26th November 1996;
(b)the lease forms part of a new scheme;
(c)in the case of the lease, the condition in sub-paragraph (1) of paragraph 3 above is or has been satisfied at some time on or after 26th November 1996 in a period of account of the current lessor; and
(d)Part I of this Schedule does not apply in the case of the lease by reason of the conditions in sub-paragraphs (2) to (5) of that paragraph not all being, or having been, satisfied as mentioned in paragraph 2 above.
[F1(1A)This Part of this Schedule does not apply if or to the extent that, in the case of the current lessor, the lease falls to be regarded in accordance with Chapter 6A of Part 2 of the Capital Allowances Act 2001 as a long funding lease for the purposes of that Part.]
(2)Where the condition in paragraph 3(1) above has been satisfied at any time on or after 26th November 1996 in a period of account of the person who was at that time the lessor, it shall be taken to continue to be satisfied unless and until—
(a)the asset ceases to be leased under the lease; or
(b)the lessor’s interest under the lease is assigned to a person who is not connected with any of the persons described in sub-paragraph (3) below.
(3)Those persons are—
(a)the assignor;
(b)any person who was the lessor at some time before the assignment; or
(c)any person who at some time after the assignment becomes the lessor pursuant to arrangements made by a person who was the lessor, or was connected with the lessor, at some time before the assignment.
(4)Nothing in sub-paragraph (2) above prevents this Part of this Schedule from again applying in the case of the lease if the conditions for its application are satisfied after the assignment.
Textual Amendments
F1Sch. 12 para. 16(1A) inserted (with effect in accordance with Sch. 9 para. 7(4) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 7(3)
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