15U.K.In CAA 2001, after section 70D insert—
(1)This section applies where—
(a)a person (“S”) transfers plant or machinery to another person (“B”),
(b)at any time after the date of the transfer, the plant or machinery is available to be used by S, or a person (other than B) who is connected with S (“CS”), under a plant or machinery lease, and
(c)that lease is a long funding lease.
(2)No annual investment allowance or first-year allowance is to be made in respect of the expenditure of S or CS under the lease.
(3)The amount, if any, by which E exceeds D is to be left out of account in determining the available qualifying expenditure of S or CS.
(4)E is the capital expenditure of S or CS on the provision of the plant or machinery under the long funding lease.
(5)If S is required to bring a disposal value into account under this Part because of the transfer referred to in subsection (1)(a), D is that disposal value.
(6)Otherwise, D is whichever of the following is the smallest—
(a)the market value of the plant or machinery;
(b)if S incurred capital expenditure on the provision of the plant or machinery before the transfer referred to in subsection (1)(a), the amount of that expenditure;
(c)if a person connected with S incurred capital expenditure on the provision of the plant or machinery before that transfer, the amount of that expenditure.
(7)Section 70Y(3) applies to references in this section to a transfer of plant or machinery by a person.
(8)For the purposes of this section a transfer involving the grant of a lease takes place on the commencement of the term of the lease.”