- Latest available (Revised)
- Point in Time (01/01/2023)
- Original (As enacted)
Point in time view as at 01/01/2023.
Finance Act 2009, Cross Heading: Disposal values: termination etc of long funding leases is up to date with all changes known to be in force on or before 29 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
6U.K.In section 66 of CAA 2001 (list of provisions outside Chapter 5 of Part 2 of that Act about disposal values), in the list, insert at the appropriate place—
“section 70E | long funding leases: disposal events and disposal values”. |
7(1)Section 70E of CAA 2001 (long funding leases: disposal events and disposal values) is amended as follows.U.K.
(2)In subsection (1), for paragraph (c) substitute—
“(c)a relevant event occurs.”
(3)After that subsection insert—
“(1A)A relevant event occurs if—
(a)the lease terminates,
(b)the plant or machinery begins to be used wholly or partly for purposes other than those of the qualifying activity, or
(c)the qualifying activity is permanently discontinued.”
(4)In subsection (2)(a), for “termination of the lease” substitute “ relevant event ”.
(5)For subsections (3) to (8) substitute—
“(2A)The amount of the disposal value is—
where—
QE is the person's qualifying expenditure on the provision of the plant or machinery,
QA is the qualifying amount (see subsections (2B) to (2E)), and
R is any relevant rebate (see subsections (2F) and (2G)).
(2B)In the case of a long funding operating lease, “the qualifying amount” means the aggregate amount of the reductions made under section 502K of ICTA or section 148I of ITTOIA 2005 for periods of account in which the person was the lessee.
(2C)In the case of a long funding finance lease, “the qualifying amount” means the aggregate of—
(a)the payments made to the lessor by the person under the lease (including any initial payment), and
(b)the payments made to the lessor by the person under a guarantee of any residual amount (as defined in section 70YE),
subject to subsection (2D).
(2D)The following are excluded from the “qualifying amount” under subsection (2C)—
(a)so much of any payment as, in accordance with generally accepted accounting practice, falls (or would fall) to be shown in the person's accounts as finance charges in respect of the lease,
(b)so much of any payment as represents charges for services, and
(c)so much of any payment as represents qualifying UK or foreign tax (within the meaning of section 70YE) to be paid by the lessor.
(2E)In the case of a long funding finance lease that is not a transaction at arm's length, “the qualifying amount” includes only so much of the amounts described in subsection (2C) as would reasonably be expected to have been paid if the lease had been such a transaction.
(2F)“Relevant rebate” means—
(a)in a case falling within subsection (1A)(a), any amount calculated by reference to the termination value that is payable for the benefit (directly or indirectly) of the person or another person connected with that person, or
(b)in a case falling within subsection (1A)(b) or (c), any such amount that would have been so payable if, when the relevant event occurred, the lease had terminated and the plant or machinery had been sold for its market value at that time.
(2G)In the case of a lease that is not a transaction at arm's length, “relevant rebate” includes any amount that would reasonably be expected to have fallen within subsection (2F) if the lease had been such a transaction.
(2H)The amount of the disposal value brought into account under this section cannot be less than nil.”
(6)In subsection (9), for “termination of the lease” substitute “ relevant event ”.
8U.K.The amendments made by paragraphs 6 and 7 have effect in relation to cases where the relevant event occurs on or after 13 November 2008.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: