Where there is a chain of leases, the question arises of whether the rules restricting allowances apply to all companies in the chain or only to the end lessee. HMRC had previously taken the view that where there is a chain of leases, the tests in former CAA 1990, s. 42(1) are applied to the end lessee only. The Solicitor of Inland Revenue, however, advised that this interpretation of the legislation was incorrect, and that CAA 2001, Pt. 2, Ch. 11 (formerly s. 42) should apply where any lessee in the chain, whether an intermediate lessee or the end lessee, meets the conditions in CAA 2001, s. 105(2), (3), 109(2).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.