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HMRC internal manual

Business Leasing Manual

HM Revenue & Customs
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Sale of lessor companies and similar arrangements: anti-avoidance: manipulation of certain amounts

Section 435 CTA2010

This guidance applies to transactions where the relevant day falls on or after 23 March 2011. For transactions where the relevant day falls before 23 March 2011 and on or after 22 November 2006 see BLM2035

Section 435(1A) sets out the circumstances in which increases or decreases in certain amounts can be ignored. The ‘amounts’ are the figures which determine whether a company falls within the scope of the sale of lessor company legislation and the effect that the legislation has.

The section applies:

whenever there is an increase or a decrease in:

  • the relevant plant or machinery value - see BLM80120 
  • the value of ‘leased out’ plant or machinery - see BLM80150 
  • the amount of the income of the company or the partnership - see BLM80505 
  • the amount of PM - see BLM80517 
  • the amount of TWDV see BLM80532 
  • the amount of any disposal value substituted under section 398G
  • and any underlying amount required to calculate or verify any of the above.

and that increase or decrease arises because the company has directly or indirectly entered into arrangements, see BLM82040; and

the main purpose, or one of the main purposes, of the arrangements is to secure a relevant tax advantage, see BLM82045.