{
  "url": "https://openlegislation.uk/capital-allowances-act-2001/section-70V",
  "json_url": "https://openlegislation.uk/capital-allowances-act-2001/section-70V.json",
  "legislation": "ukpga/2001/2",
  "legislation_title": "Capital Allowances Act 2001",
  "legislation_url": "https://openlegislation.uk/capital-allowances-act-2001",
  "path": "section/70V",
  "kind": "section",
  "number": "70V",
  "heading": "Tax avoidance involving international leasing",
  "text": "(1) This section applies where matters are so arranged that there are plant or machinery leases such that—\n(a) under a lease by a non-resident, an asset is provided directly or indirectly to a resident,\n(b) the direct provision of the asset to the resident is by a lease which, in the case of the resident, is a long funding lease or a lease to which section 67 (hire purchase etc) applies,\n(c) the asset is used by the resident for the purpose of leasing it under a lease (the “relevant lease”) that would not (apart from this section) be a long funding lease in the case of the resident, and\n(d) under the relevant lease, the asset is provided directly or indirectly (but by a lease) to a non-resident.\n(2) Subsection (3) applies if the sole or main purpose of arranging matters in that way is to obtain a tax advantage by securing that allowances under this Part are available to a resident by virtue of—\n(a) section 67 (hire purchase), or\n(b) section 70A (long funding leases).\n(3) In any such case, the relevant lease is deemed to be a long funding lease in the case of the resident who is the lessor under it.\n(4) The reference in this section to a person obtaining a tax advantage (see section 577(4)) also includes a reference to a person obtaining a tax advantage within the meaning of section 1139 of CTA 2010.\n(5) In this section—\n“non-resident” means a person who—\n(a)is not resident in the United Kingdom, and\n(b)does not use the plant or machinery exclusively for earning profits chargeable to tax;\n“resident” means a person who—\n(a)is resident in the United Kingdom, or\n(b)uses the plant or machinery exclusively for earning profits chargeable to tax.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 2 Ch. 6A inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 7"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 70V(4) 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. 331 (with Sch. 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2001/2/section/70V",
    "retrieved_at": "2026-10-29T09:20:17.739129+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}