C1C7C4C6C5C3Part 2 Plant and machinery allowances
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 21(2) (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 10 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Chapter 17 Anti-avoidance
F1Finance leaseback: parties' income and profits
Ss. 228A-228J and cross-heading inserted (with effect in accordance with s. 134(3) of the amending Act) by Finance Act 2004 (c. 12), s. 134
228GLeaseback not accounted for as finance lease in accounts of lessee
1
Sections 228B and 228C are subject to this section in their application in relation to a leaseback that is not accounted for as a finance lease in the accounts of the lessee.
2
Subsection (3) applies where the leaseback is accounted for as a finance lease in the accounts of a person connected with the lessee; and in that subsection “ relevant calculation ” means the calculation of—
a
the permitted maximum for the purposes of section 228B, or
b
the amount by which the income or profits of the lessee are to be increased in accordance with section 228C.
3
Where an amount that falls to be used for the purposes of a relevant calculation—
a
cannot be ascertained by reference to the lessee’s accounts because the leaseback is not accounted for as a finance lease in those accounts, but
b
can be ascertained by reference to the connected person’s accounts for one or more periods,
that amount as ascertained by reference to the connected person’s accounts shall be used for the purposes of the relevant calculation.
4
Subsections (5) and (6) apply in a case where the leaseback is not accounted for as a finance lease in the accounts of a person connected with the lessee.
5
Sections 228B and 228C do not apply in relation to the leaseback.
6
If the term of the leaseback begins on or after 18 May 2004 then, for the purposes of income tax or corporation tax, the income or profits of the lessee from the relevant qualifying activity for the period of account during which the term of the leaseback begins shall be increased by—
a
the net consideration for the purposes of section 228C(3) (in the case of a sale and finance leaseback), or
b
the consideration referred to in section 228F(6)(b) (in the case of a lease and finance leaseback).
7
For the purposes of this section the leaseback is accounted for as a finance lease in a person’s accounts if—
a
the leaseback falls, under generally accepted accounting practice, to be treated in that person’s accounts as a finance lease or loan, or
b
in a case where the leaseback is comprised in other arrangements, those arrangements fall, under generally accepted accounting practice, to be so treated.
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)