8(1)In section 70H of CAA 2001 (lessee: requirement for tax return treating lease as long funding lease), after subsection (1) insert—U.K.
“(1A)Subsection (1) does not apply in respect of a lease of plant or machinery (“lease A”) if, at any time in the relevant period—
(a)the lessee is the lessor of a lease of any of that plant or machinery (“lease B”), and
(b)lease B is a long funding lease.
(1B)In subsection (1A) “the relevant period” means the period—
(a)beginning with the inception of lease A, and
(b)ending with the making of the tax return for the initial period (or, if that return is amended, the making of the last amendment).”
(2)The amendment made by sub-paragraph (1) has effect in relation to leases entered into on or after 13 December 2007.