Similar rules apply to transfers by lessees as apply to transfers by lessors as explained in BLM22045.
Where a lessee of an asset (the old lessee) transfers that asset to another person who becomes the lessee of the asset (the new lessee) the old lease is treated as terminating immediately before the transfer. If the lease has been treated as a long funding operating lease by the old lessee there will be a disposal event and the new lessee will be treated as incurring qualifying expenditure.
The new lessee is treated as if
In addition, where
the new lease is treated as a lease of the same type (long
funding lease or not) as the old lease.
The meaning of the transfer of plant or machinery is the same as in the case of a transfer between lessors, see BLM22060.
The interaction between FA06/SCH8/PARA15 and CAA01/S70X means that
the lease remains a lease that is not a long funding lease in the lessor’s hands.