BIM61220 - Leasing: avoidance: assets other than land: associated persons

The section applies where:

• a person associated (see ICTA88/S783 (10)) with the taxpayer who has received relief,
• has at any time had the lessor's interest in the lease or any other interest in the asset.

Where such a person has received a capital sum in respect of that interest, the amount of the relieved payment (or, if less, the capital sum) is chargeable on him or her under:

• Case VI of Schedule D for CT cases (and IT cases up to 2004/05), or
• ICTA88/S781 (1) for IT cases (for 2005/06 onwards),

for the year of receipt, with the same time limit as in BIM61205.

Where a sum in respect of an interest in an asset is received by a person who is not the owner of the interest but who is an associate of the owner, that sum is deemed to be received by the owner himself.

Where the owner of an interest disposes of it to an associate the owner is deemed to have received whichever is the greatest of:

• the capital sum actually received,
• the open-market value of the interest,
• the value of the interest to the person to whom it is, in effect, transferred.