Capital Allowances Act 2001 section 190

Cessation of ownership of lessor where section 183 applies

Section 190 deals with the transfer of deemed ownership of a fixture from a lessor to an incoming lessee where the lessor was previously entitled to capital allowances on that fixture.

• Applies where an incoming lessee is treated as the owner of a fixture under the rules for lessors entitled to allowances
• The lessor is treated as ceasing to own the fixture at the point the lessee begins to be treated as owner
• Ensures there is no overlap period where both lessor and lessee are simultaneously treated as owners of the same fixture
• Triggers a disposal event for the lessor, which may result in balancing allowances or balancing charges