Income Tax Act 2007 section 614BT

Cases where expenditure taken into account under other provisions of CAA 2001

Section 614BT deals with situations where a lessor has received capital allowances on a leased asset under provisions of the Capital Allowances Act 2001 other than those for plant and machinery, mineral extraction, or patents, and triggers a balancing charge when a relevant occasion arises.

• This section applies where the current lessor ("L") has been given capital allowances on the leased asset under any part of CAA 2001 other than Part 2 (plant and machinery), Part 5 (mineral extraction), or Part 8 (patents)
• When a relevant occasion occurs, a balancing charge is deemed to arise on the lessor for the chargeable period in which that occasion falls
• The balancing charge amount is the lower of: the total allowances previously given (so far as not already recovered or withdrawn), or the amount or value of the major lump sum
• The term "chargeable period" takes its meaning from section 6 of CAA 2001