Capital Allowances Act 2001 section 232

Meaning of connected person

Section 232 defines who counts as a "connected person" for the purposes of the anti-avoidance rules on plant and machinery leasing in this Chapter.

• Two persons are connected if they meet the standard connected persons test under section 575 of the Capital Allowances Act 2001.
• A special rule also treats two public authorities as connected where one acquires plant or machinery from the other without purchasing it, and the asset is available for use because it has been leased under a finance lease.
• "Public authority" is broadly defined and includes the Crown, any government, or any local authority.
• The special public authority connection rule does not feed back into the definition of what constitutes a "finance lease" under section 219.