Capital Allowances Act 2001 section 192

Cessation of ownership of equipment lessor

Section 192 sets out the circumstances in which an equipment lessor is treated as ceasing to be the owner of a fixture for capital allowances purposes.

• An equipment lessor who is treated as the owner of a fixture under the equipment lessor rules may lose that ownership status in specific circumstances
• Ownership ceases if the lessor assigns their rights under the equipment lease to another party
• Ownership also ceases if the lessee's financial obligations under the lease are discharged, whether by payment of a capital sum or otherwise
• Where the lessee's obligations have passed to another person, that person is treated as the lessee for the purposes of this rule