For the purpose of the long funding lease legislation, the
market value of any plant or machinery is to be determined on the
assumption that the asset is disposed of by its absolute owner,
free from all leases and other encumbrances.
This ensures that the market value of an asset is not
affected by the existence of the lease
This definition of market value in CAA01/S70YI (2) applies to
Chapter 6A of the Capital Allowances Act (sections 70F to s.70YI)
and provisions that import that Chapter (e.g. Chapters 5A of ICTA
and 10A of ITTOIA).
