Section 681DC — Income Tax Act 2007: Sum obtained

Sum obtained 681DC 1 Condition B is that the person making the payment—

a obtains a capital sum in respect of the lessee's interest in the lease, and b is within the charge to income tax.

2 Condition C is that an associate of the person making the payment—

a obtains a capital sum by way of consideration in respect of the lessee's interest in the lease, and b is within the charge to income tax.

3 Condition D is that—

a the lessor's interest in the lease, or any other interest in the asset, belongs to an associate of the person making the payment, b the associate obtains a capital sum in respect of the interest, and c the associate is within the charge to income tax.

4 Condition E is that—

a the lessor's interest in the lease, or any other interest in the asset, belongs to an associate of the person making the payment, b an associate of that associate obtains a capital sum by way of consideration in respect of the interest, and c the associate obtaining the sum is within the charge to income tax.

5 Condition B, C, D or E may be met before, at or after the time when the payment is made.

6 Condition B or C is not met if—

a the lease is a hire-purchase agreement for plant or machinery, and b the capital sum is required to be brought into account as the whole or part of the disposal value of the plant or machinery under section 68 of CAA 2001.

7 Condition D or E is not met if—

a the capital sum is obtained in respect of the lessee's interest in the lease, b the lease is a hire-purchase agreement for plant or machinery, and c the capital sum is required to be brought into account as the whole or part of the disposal value of the plant or machinery under section 68 of CAA 2001.