SCHEDULES
SCHEDULE 20Leases of plant or machinery
Restriction on lessee's right to elect that rules for non-long funding leases apply
8
1
In section 70H of CAA 2001 (lessee: requirement for tax return treating lease as long funding lease), after subsection (1) insert—
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.