Paragraph 3

Section 25A of TCGA 1992 (long funding leases of plant or machinery: deemed disposals) is amended as follows.

In subsection (2)(a), for “the value described in subsection (4)(a) or (b)” substitute “ the relevant disposal value ”.

For subsections (4) to (4D) substitute—

“(4)

“Relevant disposal value” means—

(a)

in relation to a long funding finance lease, the disposal value described in item 5A of the table in section 61(2) of the Capital Allowances Act (disposal values), and

(b)

in relation to a long funding operating lease, the disposal value described in item 5B of that table.”

In subsection (5), omit “ “market value”,”.