SCHEDULES

SCHEDULE 22Avoidance involving financial arrangements

Rent factoring of leases of plant or machinery

1

1

Section 785A of ICTA (rent factoring of leases of plant or machinery) is amended as follows.

2

In subsection (1), omit paragraph (d).

3

In subsection (2)—

a

for “relevant portion of the consideration” substitute “ market value of the rights transferred ”, and

b

for “in a period of account to the extent that it is receivable in that period of account” substitute “ at the time of the transfer ”.

4

After that subsection insert—

2A

But subsection (2) does not apply if and to the extent that any of the market value of the rights transferred is (apart from this section) brought into account—

a

as income, or

b

as a capital allowances disposal receipt.

5

After subsection (5) insert—

5ZA

The references in subsections (1)(c) and (3) to another person include any person in which P has an interest, including any partnership of which P is a member and the trustees of any trust of which P is a beneficiary.

6

The amendments made by this paragraph have effect in relation to arrangements for transfers of rights entered into on or after 12 March 2008.