Capital Allowances Act 2001 Schedule 3 paragraph 15

Plant or machinery acquired under hire purchase etc.

Schedule 3 paragraph 15 provides a transitional modification for plant or machinery acquired under hire purchase or similar contracts entered into before 27th July 1989, by disapplying a restriction that was added to Section 67(2).

• This paragraph applies to hire purchase or similar contracts for plant or machinery entered into before 27th July 1989.
• Section 67 normally treats a person entitled to the benefit of a hire purchase contract as the owner of the plant or machinery for capital allowances purposes.
• For pre-27th July 1989 contracts, Section 67(2) applies with the bracketed words removed, effectively providing a wider or less restricted version of the ownership treatment.
• This is a transitional provision preserving the tax treatment that applied before the law was tightened for contracts entered into on or after 27th July 1989.