Capital Allowances Act 2001 section 192A

Cessation of ownership of energy services provider

Section 192A sets out the circumstances in which an energy services provider ceases to be treated as the owner of a fixture for capital allowances purposes.

• This section applies where an energy services provider is treated as the owner of a fixture under the deemed ownership rules for energy services agreements.
• The provider is treated as ceasing to own the fixture if they assign their rights under the energy services agreement, or if the client's financial obligations relating to the fixture are discharged (whether by payment of a capital sum or otherwise).
• Where both events occur, the cessation takes effect at the earliest of the two times.
• If the client's financial obligations have passed to another person (by assignment, operation of law, or otherwise), references to the client mean the person who holds those obligations at the time the capital sum is paid.