SCHEDULES

SCHEDULE 61Alternative finance investment bonds

Part 3Transactions relating to underlying assets consisting of land

Capital allowances

Q transferring asset to third person

17

1

This paragraph applies to an asset if the first and second conditions are met.

2

The first condition is that the asset is part of the subject matter of the first transaction and constitutes—

a

plant or machinery, or

F2b

a building or structure (or part of a building or structure).

3

The second condition is that Q transfers the asset to any person other than P.

4

At the time that Q transfers the asset F4

a

in a case within sub-paragraph (2)(a), that other person is to be treated as becoming, and P is to be treated as ceasing to be, the owner of the asset, and

b

in a case within sub-paragraph (2)(b), that other person is to be treated as acquiring, and P is to be treated as ceasing to have, the relevant interest in the asset.

5

Accordingly, the transfer is to be treated—

a

as regards plant or machinery, as a disposal event (in relation to P) occurring in the chargeable period in which the transfer takes place, F1...

F1b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

For the purposes of sub-paragraph (5)—

a

in the case falling within paragraph (a), the disposal value that P is required to bring into account is the market value of the asset at the time of the transfer, F3...

F3b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .