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HMRC internal manual

Capital Allowances Manual

Overseas leasing: Certificates and notices

CAA01/S118 & S119

A person who makes a claim for a FYA or a normal WDA on plant or machinery that is used for overseas leasing, but where the leasing is protected leasing, should send in a certificate with the claim.

The certificate should specify the type of protected leasing and the lessee. It should include details of all the plant or machinery that the certificate covers.

If plant or machinery that has qualified for FYA or a normal WDA begins to be used for overseas leasing so that the 10% rate of WDA applies, the owner must give notice of this to HM Revenue & Customs. The notice must specify the non-resident lessee. If it covers more than one item of plant or machinery it should specify all the items that it applies to. The notice should be given not later than 3 months after the end of the chargeable period in which the overseas leasing begins. If the person required to give the notice does not know and cannot reasonably be expected to know at the end of the 3 months that the overseas leasing legislation applies to the plant or machinery, that person should give notice within 30 days of coming to know it.

A person who leases plant or machinery to joint lessees so that the joint lessees legislation applies CA24400 also has to give notice to the HM Revenue and Customs. The notice should specify the names and addressees of the joint lessees, the part of the expenditure on the plant or machinery attributable to each of them and which of them is resident in the UK so far as the lessor knows. The time limit for giving notice is within 3 months of the end of the chargeable period in which the plant or machinery is first leased to the joint lessees. If the person required to give the notice does not know and cannot reasonably be expected to know at the end of the 3 months that the joint lessees legislation applies to the plant or machinery, that person should give notice within 30 days of coming to know it.

If it is necessary to recover excess relief on plant or machinery leased to joint lessees CA24400 the lessor must give notice of this to HMRC. The time limit for giving notice is within 3 months of the end of the chargeable period in which it is necessary to recover excess relief. If the person required to give the notice does not know and cannot reasonably be expected to know at the end of the 3 months that it is necessary to recover excess relief on the plant or machinery, that person should give notice within 30 days of coming to know it.