Finance Act 2004

Section 228C

5 (1) Section 228C applies subject to this paragraph where—

(a) the existing leaseback terminates otherwise than by expiry of its term, and

(b) the amount calculated in accordance with section 228C(3) exceeds the relevant cap.

(2) In determining the amount by which income or profits are to be increased under section 228C(2), the amount calculated in accordance with section 228C(3) shall be disregarded to the extent that it exceeds the relevant cap.

(3) The relevant cap is—

where—

• “Original Consideration” has the same meaning as in section 228B;

• “Relevant Rentals” means—

  (a)

  the pre-commencement rentals, minus

  (b)

  the total of—

  (i)

  finance charges shown in the accounts for periods that end before 17 March 2004, and

  (ii)

  the appropriate proportion of finance charges shown in the accounts for the transitional period of account;

• “Net Consideration” has the same meaning as in section 228C.