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HMRC internal manual

Business Leasing Manual

From
HM Revenue & Customs
Updated
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Sale of lessor companies and similar arrangements: introduction and background: how the guidance is arranged

The guidance is arranged in six parts:

Part 1, BLM80100 onwards, covers the meaning of a ‘business of leasing plant or machinery’.

Part 2, BLM80300 onwards, covers the meaning of a ‘qualifying change in ownership’.

Part 3, BLM80500 onwards covers the calculation of the amount of income.

Part 5, BLM81000 onwards, covers situations when a company in partnership carries on the leasing business.

Part 6, BLM82000 onwards covers anti avoidance provisions and miscellaneous matters.

The sale of lessor company provisions have effect for transactions on or after 5 December 2005. There have been a number of changes to the legislation since that date and you should follow the guidance that reflects the statutory position at the time of the relevant transaction.

Summary of changes:

22 November 2006 - changes to the anti avoidance provisions dealing with balance sheet values and the scope of legislation dealing with a succession to a trade of leasing carried on by a company alone.

31 March 2007 - further changes to the scope of legislation dealing with a succession to a trade of leasing to encompass trades carried on by companies in partnership.

13 November 2008 - changes to the balance sheet values of assets leased in under long funding leases.

22 April 2009 - changes to permit more flexible access to the expense amount

9 December 2009 - changes to provisions dealing with consortia and the introduction of the election out.

23 March 2010 - changes to the terms of the election out.

23 March 2011 - changes to the test to establish whether a company carries on a business of leasing plant or machinery, changes to the method of valuing certain balance sheet assets and changes to the anti avoidance provisions.

21 March/23 April 2012 - changes to the meaning of relevant change in relationship to encompass companies joining a tonnage tax group.

In cases of doubt or difficulty you should contact CTISA (CT&BIT) for further advice.