It is possible for a transaction to fall within both
CAA01/S67 and CAA01/S70A. If this is the case, CAA01/S67 takes
priority.
Example
B Ltd (a UK resident) enters into a HP contract to acquire a
machine from A Ltd (possible UK resident, possibly resident
overseas).
B Ltd leases the machine to C Ltd, another UK resident.
Under CAA01/S67, B would be entitled to capital allowances,
but CAA01/S34A denies B that right. However, CAA01/S67 provides
that the plant or machinery is treated as owned by B, and not by
any other person, and nothing in s.70A overrides that.
This means that neither B nor C is entitled to claim capital
allowances.
