BLM01030 - Introduction:
anti-avoidance rules: capital allowances
Chapter 17 of CAA2001 contains a number of anti-avoidance
rules that deter exploitation of plant or machinery allowances.
They cover
- transactions between connected
persons
- transactions where the sole or main
benefit is to obtain plant or machinery allowances
- sale and leaseback
- restriction of a lessor’s capital
allowances where the assets are used for finance leasing
- sale and finance leaseback
- lease and finance leaseback
- leases where there are arrangements in
place the reduce the lessor’s risk from non- payment of
rentals by the lessee (known as defeasance)
- sale of assets without the income
stream.
Guidance is at
CA28000 and
CA28900
onwards.
