Anti-avoidance legislation having immediate effect from 26 February 2015 will restrict to nil the expenditure qualifying for plant and machinery allowances in a sale and leaseback or connected-party transaction, where the person disposing of the asset, or a person connected with them, acquired it
Anti-avoidance legislation having immediate effect from 26 February 2015 will restrict to nil the expenditure qualifying for plant and machinery allowances in a sale and leaseback or connected-party transaction, where the person disposing of the asset, or a person connected with them, acquired it without incurring capital expenditure or an arm’s length amount of revenue expenditure. HMRC has published a draft Finance Bill clause and schedule, together with explanatory notes. A tax impact note has also been published.
In a written ministerial statement, dated 26 February, David Gauke said: ‘HMRC has become aware of a proposed transaction that seeks to take advantage of a perceived gap in the sale and leaseback rules for capital allowances. The claimed effect of the transaction is to create tens of millions of pounds of capital allowances in respect of assets where no real expenditure has been incurred. The government does not accept that these arrangements would have this effect, but we will put this beyond doubt by taking action today.’
Anti-avoidance legislation having immediate effect from 26 February 2015 will restrict to nil the expenditure qualifying for plant and machinery allowances in a sale and leaseback or connected-party transaction, where the person disposing of the asset, or a person connected with them, acquired it
Anti-avoidance legislation having immediate effect from 26 February 2015 will restrict to nil the expenditure qualifying for plant and machinery allowances in a sale and leaseback or connected-party transaction, where the person disposing of the asset, or a person connected with them, acquired it without incurring capital expenditure or an arm’s length amount of revenue expenditure. HMRC has published a draft Finance Bill clause and schedule, together with explanatory notes. A tax impact note has also been published.
In a written ministerial statement, dated 26 February, David Gauke said: ‘HMRC has become aware of a proposed transaction that seeks to take advantage of a perceived gap in the sale and leaseback rules for capital allowances. The claimed effect of the transaction is to create tens of millions of pounds of capital allowances in respect of assets where no real expenditure has been incurred. The government does not accept that these arrangements would have this effect, but we will put this beyond doubt by taking action today.’
