FA97/Sch12/Para11(13) deals with the situation where relief
has been given under CAA01/Ss 537 to 542 to a contributor for sums
paid to fund a lessor's expenditure on a leased asset and a major
lump sum is receivable in respect of that asset. In those
circumstances allowances granted to the lessor are recaptured in
the same way and to the same extent as the lessor's allowances
would have been clawed back if they had been entitled to them in
the first place.
Without this provision it would have been possible to
side-step Paragraph 11 by arranging for, say, another member of the
lessor group to claim capital allowances in respect of the lessor's
expenditure rather than the lessor itself. The benefit of those
capital allowances would then have been retained even though the
lessor's outlay would have been recouped by means of the major lump
sum.
