# The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006, Regulation 16: The relevant value condition

Extent: E+W+S+N.I.

(1) The relevant value condition is met if—
(a) the lower of the cost to the lessor, or the market value, of any one asset forming part of the plant and machinery leased or to be leased under the arrangements is at least £10,000,000; or
(b) the aggregate of the lower of the costs to the lessor, or the market values, of all of the assets forming part of the plant and machinery leased or to be leased under the arrangements is at least £25,000,000.
(2) For the purposes of paragraph (1) the market value of plant or machinery leased or to be leased under the arrangements is to be determined on the assumption of a disposal—
(a) by an absolute owner;
(b) free from all encumbrances; and
(c) in the open market.
(3) “Absolute owner” in the application of paragraph (2)(a) to Scotland, means the owner.

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Source: https://www.legislation.gov.uk/uksi/2006/1543/regulation/16 (the official version)
Page: https://openlegislation.uk/tax-avoidance-schemes-prescribed-descriptions-of-arrangements-regulations-2006/regulation-16
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.