Capital Allowances Act 2001 Schedule 3 paragraph 30

Equipment lessors

Paragraph 30 of Schedule 3 provides a transitional rule that exempts certain equipment leasing agreements from the equipment lessor restrictions where those agreements were entered into before a specified date.

• Section 177(1)(a)(i) restricts capital allowances for equipment lessors in certain circumstances.
• This restriction does not apply where the lease agreement for the plant or machinery was entered into before 19th March 1997.
• The exemption is based solely on the date the lease agreement was made, regardless of when the plant or machinery was brought into use.
• This transitional provision protects lessors who committed to leasing arrangements before the restriction was introduced.