Capital Allowances Act 2001 section 267A

Restriction on effect of election

Section 267A restricts the ability of connected persons to use written-down values when transferring certain leased plant or machinery as part of a business succession, requiring the use of actual consideration instead.

• When a leasing business is transferred to a successor, any election under section 266 to use written-down values does not apply to qualifying leased plant or machinery
• The restriction means that balancing adjustments on the disposal of such assets must be calculated using the actual consideration received, not the tax written-down value
• The definition of a "business of leasing plant or machinery" follows the Corporation Tax Act 2010, with separate definitions depending on whether the business is carried on in partnership or not
• The restriction applies to disposals made after 5 December 2005