Section 228A — Finance Act 2008: Application of sections 228B and 228C

Application of sections 228B and 228C 228A 1 Sections 228B and 228C apply where plant or machinery is the subject of a lease and finance leaseback.

2 Plant or machinery is the subject of a lease and finance leaseback if—

a a person (“S”) leases the plant or machinery to another (“B”),

b after the date of that transaction, the use of the plant or machinery falls within sub-paragraph (i), (ii) or (iii) of section 221(1)(b),

and c it is directly as a consequence of having been leased under a finance lease that the plant or machinery is available to be so used after that date.

3 For the purposes of subsection (2), S leases the plant or machinery to B only if—

a S grants B rights over the plant or machinery, b consideration is given for that grant, and c S is not required to bring all of that consideration into account under this Part.