BLM82030 - Sale of lessor companies
and similar arrangements: anti- avoidance: manipulation of balance
sheet values - introduction
Balance sheet values may be manipulated to avoid the charge
under Schedule 10. If the amounts shown in the balance sheet in
respect of plant or machinery are depressed the PM amount is
decreased, perhaps to nil. Where this is the case, two consequences
could flow:
- The company may no longer be regarded as
carrying on the business of leasing plant or machinery, see
BLM80100 onwards.
- Even if it is still regarded as carrying
on the business of leasing plant or machinery the Schedule 10
charge is reduced or eliminated.
This avoidance activity is countered by FA06/SCH10/PARA38A and
PARA38B.
