Commentary

B5.415B Leases—anti-avoidance: taking over payment obligations as lessee

Business tax
Business tax | Commentary

B5.415B Leases—anti-avoidance: taking over payment obligations as lessee

Business tax | Commentary

B5.415B Leases—anti-avoidance: taking over payment obligations as lessee

FA 2016 introduced legislation to make any payment received for agreeing to take responsibility for tax deductible lease related payments subject to tax as income1. The provisions apply where under any arrangements made on or after 25 November 20152:

  1.  

    (a)     a company or person (P) agrees to take over the obligations of another person (A) as lessee under a lease of plant and machinery

  2.  

    (b)     as a result of the agreement P, or a person connected with P, becomes entitled to deductions either in calculating income or from total profits; and

  3.  

    (c)    

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