BLM70690 - Schedule 12 FA 1997: definition of a Part I lease: leases ceasing to come within Part I - connected persons

FA97/Sch12/para25 provides that a person is connected with another person if they are connected within the meaning of ICTA88/S839. Paragraph 25(1) provides that if a person is connected with another person at some time in the period which:

• begins as soon as the leasing arrangements are made; and
• ends when the lessor in question finally ceases to have any interest in the asset or related arrangements

they are to be regarded as connected throughout that period. These provisions are widely drafted in order to prevent the interposition of 'stooges' in a chain of assignments to get round the rule that the status of a lease is not re-tested on a transfer to a connected person.