Capital Allowances Act 2001 Schedule 3 paragraph 17

Plant or machinery provided by lessee

Schedule 3 paragraph 17 provides a transitional rule that disapplies certain conditions in section 70(1) for leases entered into before 12 July 1984.

• Section 70 sets out the conditions under which a lessee who installs plant or machinery on leased land can claim capital allowances on that plant or machinery.
• Two of those conditions — paragraphs (c) and (d) of section 70(1) — are switched off for older leases by this transitional provision.
• The cut-off date is 12 July 1984: leases entered into before that date are exempt from the paragraphs (c) and (d) requirements.
• Leases entered into on or after 12 July 1984 are also exempt if they were made under an agreement that was already in place before that date.