Regulation 17 Short-term leasesI1
United Kingdom
For the purposes of regulation 13(1)(d) a lease whose term is 2 years or less is a short-term lease.
But a lease is not a short-term lease if any of the following Conditions apply.
In those Conditions “L” is the lessee.
Condition A is that the lease contains an option exercisable by L to extend the term so that the total term exceeds 2 years.
Condition B is that at the time of the inception of the lease, other arrangements have been entered into which contemplate the extension of the lease to L which, if carried out, would extend the term of the lease so that it exceeds 2 years.
Condition C is that—
a person leases an asset to L under a lease that would, apart from this paragraph, be a short-term lease,
the inception of that lease is on or after the date on which these Regulations come into force,
at or about the time of the inception of that lease, arrangements are entered into for the asset to be leased to one or more other persons under one or more other leases, and
in the aggregate, the term of the lease to L and the terms of the leases to such of those other persons as are connected with L exceed 2 years.
In this regulation “inception” has the meaning given by section 70YI CAA 2001.
Annotations
Textual amendments
- F1
Reg. 17(5) inserted (1.1.2011) by The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations 2010 (S.I. 2010/2834), regs. 1, 13