The rules for taxing long funding leases were introduced in
FA 2006, following a period of constructive consultation.
Responding to calls for an early announcement of when the new
regime would begin, and for details of the transitional rules that
would apply, the then Paymaster General, Dawn Primarolo, announced
on 21 July 2005 that the long funding lease regime would be
introduced with effect from 1 April 2006.
This announcement was accompanied by a Technical Note
explaining, among other things, that some of the transitional rules
would take effect from the day of the announcement, 21 July
2005.
