Capital Allowances Act 2001 Schedule 3 paragraph 21

Meaning of "overseas leasing"

Paragraph 21 of Schedule 3 modifies the definition of "overseas leasing" in section 105(2) for leases of plant or machinery entered into before 16th March 1993.

• This paragraph applies only to leases of plant or machinery entered into before 16th March 1993.
• It modifies the standard definition of "overseas leasing" found in section 105(2) of the Capital Allowances Act 2001.
• Under this modified definition, leasing counts as overseas leasing where the lessee does not use the plant or machinery for a qualifying activity carried on in the UK, or for earning profits taxable under the territorial sea provisions of section 830(4) of ICTA.
• The effect is to apply an older, slightly different test for what constitutes overseas leasing to these pre-March 1993 arrangements.