7
Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
Finance Act 2019 PART 2 — Long funding leases
Amendments to Part 2 of CAA 2001
Meaning of “short lease”
8
(1) In section 70I (“short lease”)— (a) in subsections (2) and (9)(d), for “5” substitute “ 7 ” , and (b) omit subsections (3) to (8). (2) In section 70YF (the “term” of a lease)— (a) in subsection (5)(b), for “5” substitute “ 7 ” , (b) in subsection (6), for “5” substitute “ 7 ” , and (c) omit subsection (7). (3) In section 220 (allocation of expenditure to a chargeable period), in subsection (4)(c), for “5” substitute “ 7 ” .
The lease payments test: interest rate implicit in lease
9
(1) Section 70O (the lease payments test) is amended as follows. (2) In subsection (4), for paragraph (b) substitute— (b) if a rate cannot be determined in accordance with paragraph (a), the interest rate implicit in the lease is taken to be 1% above LIBOR. (3) After that subsection insert— (5) For this purpose— (a) LIBOR means the London interbank offered rate at the relevant time for deposits for a term of 12 months in the applicable currency, (b) the relevant time is the inception of the lease, and (c) the applicable currency is the currency in which payments under the lease are payable.
Commencement
10
The amendments made by this Part of this Schedule have effect in relation to leases entered into on or after 1 January 2019.
Back to Finance Act 2019 — full text
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Contains public sector information licensed under the Open Government Licence v3.0 (legislation.gov.uk).