Section 25A — Taxation of Chargeable Gains Act 1992: Long funding leases of plant or machinery: deemed disposals

Long funding leases of plant or machinery: deemed disposals 25A 1 This section applies where plant or machinery is used for the purpose of leasing under a long funding lease.

2 The lessor shall be deemed for all purposes of this Act—

a to have disposed of the plant or machinery at the commencement of the term of the lease at the relevant disposal value , and b to have immediately reacquired it at the same value.

3 The lessor shall also be deemed for all purposes of this Act—

a to have disposed of the plant or machinery on the termination of the lease for a consideration equal to the termination amount, and b to have immediately reacquired it for the same consideration. 4 “ Relevant disposal value ” means—

a in relation to a long funding finance lease, the disposal value described in item 5A of the table in section 61(2) of the Capital Allowances Act (disposal values),

and b in relation to a long funding operating lease, the disposal value described in item 5B of that table.

5 For the purposes of this section, the following expressions have the meaning given in Chapter 6A of Part 2 of the Capital Allowances Act (interpretation of provisions about long funding leases)— “ commencement ”, in relation to the term of a lease, “lessor”, “long funding lease”, “long funding finance lease”, “long funding operating lease”, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ the term ”, in relation to a lease, “termination”, “termination amount”.