Part 2 Plant and machinery allowances
Chapter 11 Overseas leasing
Certain expenditure to be pooled
107 The overseas leasing pool
(1)
Qualifying expenditure to which this section applies, if allocated to a pool, must be allocated to a class pool (“the overseas leasing pool”).
(2)
This section applies to qualifying expenditure if—
(a)
it is incurred on the provision of plant or machinery for leasing,
(b)
the plant or machinery is at any time in the designated period used for overseas leasing which is not protected leasing, and
(c)
the expenditure is not—
(i)
long-life asset expenditure, or
(ii)
expenditure that is required to be allocated to a single asset pool.
108 Effect of disposal to connected person on overseas leasing pool
(1)
This section applies if—
(a)
a person who has incurred qualifying expenditure which has been allocated to an overseas leasing pool disposes of the plant or machinery to a connected person,
(b)
the disposal F1does not occur on the occasion of a change in the persons carrying on the qualifying activity—
(i)
which falls within F2Chapter 1 of Part 22 of CTA 2010 (transfers of trade without a change of ownership), or
(ii)
in relation to which Condition A or Condition B is met, and
(c)
a disposal value is required to be brought into account on that occasion under this Part.
F3(1A)
Condition A is that—
(a)
at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and
(b)
at least one person who carried on the qualifying activity before the change continued to carry it on after the change.
(1B)
Condition B is that—
(a)
the qualifying activity was carried on in partnership both immediately before and immediately after the change,
(b)
a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and
(c)
at least one company which carried the activity on before the change continued to carry it on after the change.
(2)
The disposal value to be brought into account is—
(a)
the market value of the plant or machinery at the time of the disposal, or
(b)
if less, the qualifying expenditure incurred by the person disposing of the plant or machinery.
(3)
The person acquiring the plant or machinery is to be treated for the purposes of this Part as having incurred expenditure on its provision of an amount equal to the disposal value given by subsection (2).
F4(4)
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