BLM23025 - LFLs: commencement and
transition: excepted leases: FA06/Sch8/Para 17
In broad terms, the concept of excepted leases allows a
transitional period so that existing leases, and leases which were
about to commence when the long funding lease regime was announced
on 21 July 2005 are not affected by the introduction of the rules
for taxing long funding leases.
A lease is an excepted lease if all the following conditions
are met:
- Condition 1: before 21 July 2005 there was
a pre-existing heads of agreement (see
BLM23035)
- Condition 2: the leased plant or machinery
was under construction before 1 April 2006 (see
BLM23065)
- Condition 3: the lease is finalised (see
BLM23010) before 1 April 2007 (or, if
certain conditions are met, 1 April 2009 – see
BLM23030)
- Condition 4: the commencement of the lease
term (
BLM25005) is before 1 April 2007 (or, if
certain conditions are met, 1 April 2009 – see
BLM23030)
- Condition 5: the lessee is the person
identified as such in the pre-existing heads of agreement
- Condition 6: the principal terms of the
lease are not materially different from those in the pre-existing
heads of agreement (see
BLM23075).
