Section 108 Effect of disposal to connected person on overseas leasing pool

United Kingdom

(1)

This section applies if—

(a)

a person who has incurred qualifying expenditure which has been allocated to an overseas leasing pool disposes of the plant or machinery to a connected person,

(b)

the disposal F1does not occur on the occasion of a change in the persons carrying on the qualifying activity—

(i)

which falls within F2Chapter 1 of Part 22 of CTA 2010 (transfers of trade without a change of ownership), or

(ii)

in relation to which Condition A or Condition B is met, and

(c)

a disposal value is required to be brought into account on that occasion under this Part.

F3(1A)

Condition A is that—

(a)

at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b)

at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(1B)

Condition B is that—

(a)

the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b)

a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c)

at least one company which carried the activity on before the change continued to carry it on after the change.

(2)

The disposal value to be brought into account is—

(a)

the market value of the plant or machinery at the time of the disposal, or

(b)

if less, the qualifying expenditure incurred by the person disposing of the plant or machinery.

(3)

The person acquiring the plant or machinery is to be treated for the purposes of this Part as having incurred expenditure on its provision of an amount equal to the disposal value given by subsection (2).

F4(4)

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

Annotations

Textual amendments

F1: S. 108(1)(b)(i)(ii) and words substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 485(2) (with Sch. 2 Pts. 1, 2)
F2: Words in s. 108(1)(b)(i) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 334 (with Sch. 2)
F3: S. 108(1A)(1B) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 485(3) (with Sch. 2 Pts. 1, 2)
F4: S. 108(4) repealed (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 537(3), 3 (with Sch. 2)

Notes on Part 2

Modifications

C1: Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
C2: Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
C3: Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
C4: Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
C5: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
C6: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
C7: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
C8: Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
C9: Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
C10: Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)