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Capital Allowances Act 2001

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Changes over time for: Section 227

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Point in time view as at 06/04/2024.

Changes to legislation:

Capital Allowances Act 2001, Section 227 is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

227 [F1Sale and leaseback: election for special treatment ]U.K.
This section has no associated Explanatory Notes

(1)Section 228 applies if—

(a)B enters into a relevant transaction with S,

(b)the plant or machinery—

(i)is within section 216(1)(b) (sale and leaseback), F2...

F2(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)the conditions set out in subsection (2) are met, and

(d)B and S elect that section 228 should apply.

(2)The conditions are—

(a)that S incurred capital expenditure on the provision of the plant or machinery,

(b)that the plant or machinery was unused and not second-hand at or after the time when it was acquired by S,

(c)that the plant or machinery was acquired by S otherwise than as a result of a transaction to which section [F3217 or 218] applies,

(d)that the relevant transaction is effected not more than 4 months after the first occasion on which the plant or machinery is brought into use by any person for any purpose, and

(e)that S has not—

(i)made a claim for an allowance under this Act in respect of expenditure incurred on the provision of the plant or machinery,

(ii)made a tax return in which such expenditure is taken into account in determining his available qualifying expenditure for the purposes of this Part, or

(iii)given notice of any such amendment of a tax return as provides for such expenditure to be so taken into account.

(3)In subsection (2)(b) and (c), the references to the plant or machinery being acquired by S are, in a case where the relevant transaction between S and B falls within section 213(1)(c) (assignment), references to the making of the contract the benefit of which S assigns to B.

(4)An election under this section—

(a)must be made by notice to [F4an officer of Revenue and Customs] no later than 2 years after the date of the transaction, and

(b)is irrevocable.

(5)Nothing in—

(a)section 42 of, or Schedule 1A to, TMA 1970 (claims and elections for income tax purposes), or

(b)paragraphs 54 to 60 of Schedule 18 to FA 1998 (claims and elections for corporation tax purposes),

applies to such an election.

(6)In subsection (4) “the date of the transaction” means the date of the sale, the making of the contract or the assignment referred to in section 213(1)(a) to (c).

Textual Amendments

F1S. 227 heading substituted (with effect in accordance with Sch. 20 para. 6(19) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 6(13)

F2S. 227(1)(b)(ii) and preceding word omitted (with effect in accordance with Sch. 20 para. 6(19) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 20 para. 6(13)(a)

F3Words in s. 227(2)(c) substituted (with effect in accordance with Sch. 20 para. 6(19) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 6(13)(b)

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