Modifications etc. (not altering text)
C1Pt. 3 (ss. 271-360) modified (prosp.) by Proceeds of Crime Act 2002 (c. 29), ss. 448, 458(1), Sch. 10 paras. 18, 21
(1)No election may be made under section 290 by a lessor and lessee who are connected persons unless—
(a)the lessor is a body discharging statutory functions, and
(b)the lessee is a company of which it has control.
(2)No election may be made under section 290 if it appears that the sole or main benefit which may be expected to accrue to the lessor from the grant of the lease and the making of an election is obtaining a balancing allowance.
(3)Whether the duration of a lease exceeds 50 years is to be determined—
(a)in accordance with section 38(1) to (4) and (6) of ICTA, and
(b)without regard to section 359(3) (new lease granted as a result of the exercise of an option treated as continuation of old lease).
(4)An election under section 290 must be made by notice to the Inland Revenue within 2 years after the date on which the lease takes effect.
(5)All such adjustments, by discharge or repayment of tax or otherwise, are to be made as are necessary to give effect to the election.