Part 21 Leasing arrangements: finance leases and loans

Chapter 2 Finance leases with return in capital form

Effect of disposals

916 Assignments on which neither a gain nor a loss accrues
(1) This section applies if—
(a) the current lessor (“L”) assigns the lessor's interest under the lease, and
(b) the assignment is a disposal on which, as a result of any of the no gain/no loss provisions, neither a gain nor a loss accrues.
(2) This Part has effect as if—
(a) a period of account of L (“L's period”) ended with the assignment, and
(b) a period of account of the assignee (“A's period”) began with the assignment.
(3) Any cumulative accountancy rental excess for L's period becomes the cumulative accountancy rental excess for A's period.
(4) Any cumulative normal rental excess for L's period becomes the cumulative normal rental excess for A's period.
(5) If the assignee is a person subject to income tax, so far as this section relates to the assignee, it applies for the purposes of Part 11A of ITA 2007 as it would otherwise apply for the purposes of this Part.
(6) In this section “the no gain/no loss provisions” has the same meaning as in TCGA 1992 (see section 288(3A) of that Act).