Capital Allowances Act 2001 section 193

Acquisition of ownership by lessor or licensor on termination of lease or licence

Section 193 deals with who becomes the owner of a fixture for capital allowances purposes when a lease or licence comes to an end.

• When a lease or licence terminates, the outgoing tenant or licensee is treated as ceasing to own any fixture under section 188.
• The landlord (lessor) or licensor automatically becomes the deemed owner of the fixture from the point of termination.
• This ensures continuity of ownership for capital allowances purposes, so the fixture is not left without a recognised owner.
• The rule applies equally whether the arrangement is structured as a lease or as a licence.