Paragraph 14

United Kingdom

(1)

This paragraph applies to an asset if—

(a)

each of conditions A to C is met before the end of the period of 30 days beginning with the effective date of the first transaction, and

(b)

the asset falls within sub-paragraph (2).

(2)

An asset falls within this sub-paragraph if it is part of the subject matter of the first transaction and constitutes—

(a)

plant or machinery, or

F1(b)

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

(3)

For the purposes of CAA 2001—

(a)

expenditure incurred by Q in acquiring the asset by virtue of the first transaction is not to be regarded as capital expenditure, and

(b)

F2in a case within sub-paragraph (2)(a), Q is not to be regarded as becoming, and P is not to be regarded as ceasing to be, the owner of the asset by virtue of that transactionF3; and

(c)

in a case within sub-paragraph (2)(b), Q is not to be regarded as acquiring, and P is not to be regarded as ceasing to have, the relevant interest in the asset by virtue of that transaction.

(4)

Sub-paragraph (3) applies in relation to the transactions mentioned in sub-paragraph (5) as it applies in relation to the first transaction (but reading the references to Q as references to P and the reference to P as a reference to Q).

(5)

The transactions are—

(a)

any leaseback agreement entered into by Q and P in order that condition C is met, and

(b)

the second transaction.

(6)

This paragraph is subject to paragraphs 15 to 17.

Annotations

Textual amendments

F1: Sch. 61 para. 14(2)(b) substituted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 8(2)(a)
F2: Words in Sch. 61 para. 14(3)(b) inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 8(2)(b)
F3: Sch. 61 para. 14(3)(c) and preceding word inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 8(2)(c)