SCHEDULES
SCHEDULE 8Long funding leases of plant or machinery
Part 4Commencement and transitional provisions
Excepted leases
17
1
A lease is an excepted lease if the following conditions are met.
2
Condition 1 is that before 21st July 2005 there was evidence in writing that there was agreement, or a common understanding, between the lessor's side and the lessee's side as to the principal terms of the lease (the “pre-existing heads of agreement”).
The definitions of “the lessor's side”, “the lessee's side” and “the principal terms” are in paragraph 27.
3
Condition 2 is that the leased plant or machinery was under construction (see paragraph 24) before 1st April 2006.
4
Condition 3 is that the lease has been finalised before 1st April 2007 (but see sub-paragraph (8)).
5
Condition 4 is that the commencement of the term of the lease is before 1st April 2007 (but see sub-paragraph (8)).
6
Condition 5 is that the lessee is the particular person or persons identified as such in the pre-existing heads of agreement.
7
Condition 6 is that the principal terms of the lease are not (or, apart from section 70M of CAA 2001, would not be) materially different from those in the pre-existing heads of agreement.
8
Sub-paragraphs (4) and (5) have effect with the substitution of “
2009
”
for “2007” if the additional conditions in paragraph 18 are met.