390. Leasing contracts and company reconstructions.

If:

  1.  

    (1)     under a contract a company ('the leasing company') incurs capital expenditure on the provision of plant or machinery1;

  2.  

    (2)     the leasing company lets that plant and machinery to another person under another contract (a 'leasing contract')2;

  3.  

    (3)     a first year allowance3 in relation to the capital expenditure is made to the leasing company for an accounting period ('the allowance period')4;

  4.  

    (4)     arrangements5 are in place in the allowance period as a result of which, at some time during or after the allowance period, a successor company ('company S')6 will be able to carry on any part of