Corporation Tax Act 2010 section 930

Pre-26 November 1996 schemes and post-25 November 1996 schemes

Section 930 defines how a lease of an asset is classified as either a "pre-26 November 1996 scheme" or a "post-25 November 1996 scheme" for the purposes of the leasing arrangements rules.

• A lease forms part of a pre-26 November 1996 scheme only if a written contract was made before that date, was unconditional (or any conditions were met before that date), and no terms remained to be agreed on or after that date.
• Where a written contract existed before 26 November 1996 but not all conditions or terms were finalised by that date, the lease can still qualify as a pre-26 November 1996 scheme if outstanding matters were resolved within a "finalisation period" and the final contract was not materially different from the original.
• The finalisation period ends on the later of 31 January 1997 or six months after the day the contract was made, though HMRC may extend this in individual cases.
• Any lease that does not meet the conditions for a pre-26 November 1996 scheme is automatically classified as part of a post-25 November 1996 scheme.