Capital Allowances Act 2001 section 172A

Long funding leases etc: cases where this Chapter does not apply

Section 172A disapplies the fixtures Chapter where plant or machinery that is or becomes a fixture is the subject of a long funding lease, including certain sub-lease arrangements.

• Where plant or machinery that is or becomes a fixture is subject to a long funding lease, the normal fixtures rules in this Chapter are switched off.
• The section also covers situations where the lessee under the long funding lease sub-leases some or all of the plant or machinery under a further lease, provided that further lease is not itself a long funding lease.
• The fixtures Chapter cannot be used to determine whether the lessor or lessee under either lease is entitled to capital allowances on the plant or machinery.
• The fixtures Chapter also cannot be used to determine whether the lessor or lessee under either lease is treated as the owner of the plant or machinery for capital allowances purposes.