Capital Allowances Act 2001 section 120

Notice and joint lessees

Section 120 sets out the notification requirements a lessor must meet when plant or machinery is jointly leased, including what information must be provided to HMRC and the deadlines for doing so.

• When plant or machinery is leased jointly to multiple lessees under the overseas leasing rules, the lessor must notify HMRC, providing the names, addresses, expenditure shares, and UK residency status of each joint lessee.
• If circumstances arise that trigger the recovery of capital allowances in relation to joint lessees, the current lessor must send a further notice to HMRC identifying the situation.
• A recovery notice must identify any non-UK resident joint lessees to whom the plant or machinery has been leased, and list all relevant items of plant or machinery if the notice relates to a chargeable period covering more than one item.
• All notices must be given within 3 months of the end of the chargeable period in which the relevant event occurs, or within 30 days of the lessor becoming aware of the circumstances if they could not reasonably have known sooner.