Capital Allowances Act 2001 section 45

Sale and finance leasebacks

Section 45 of Schedule 3 provides a transitional exemption from the sale and finance leaseback anti-avoidance rules for certain older transactions and expenditure predating specific cut-off dates.

• The sale and finance leaseback rules in sections 221, 222 and 224 to 226 do not apply to expenditure incurred before 2 July 1998, provided the transaction meets specified conditions.
• The exemption applies where the relevant transaction is a purchase under a contract entered into before 2 July 1997.
• It also applies where the transaction is itself a contract entered into before 2 July 1997.
• The exemption further covers an assignment made before 2 July 1997, or an assignment made under a contract entered into before that date.