Explanatory note
(This note is not part of the Regulations)
These Regulations enable a lessor to elect to join the new long funding lease regime introduced by Schedules 8 and 9 to the Finance Act 2006 (c. 25) in respect of leases of plant or machinery that would not otherwise be covered by that legislation.
Regulation 1 provides for citation, commencement, interpretation and effect.
Regulation 2 specifies how and when an election in respect of eligible leases and qualifying incidental leases (the conditions for which are set out in regulations 3 and 4 respectively) may be made and withdrawn, and explains the effect of an election.
A regulatory impact assessment in respect of the provisions of the Finance Act 2006 is available on the website of HM Revenue and Customs at www.hmrc.gov.uk/ria and may be obtained by writing to the Ministerial Correspondence Unit, 1st Floor, HM Revenue and Customs, Ferrers House, P.O. Box 38, Castle Meadow Road, Nottingham, NG2 1BB.