Capital Allowances Act 2001 section 228F

Lease and finance leaseback

Section 228F addresses the capital allowances implications where a person leases plant or machinery and then enters into a finance leaseback arrangement for the same asset.

• This section applies where plant or machinery is first acquired under a lease and then made the subject of a finance leaseback transaction.
• The provision is designed to prevent manipulation of capital allowances through arrangements that combine an initial lease with a subsequent finance leaseback of the same asset.
• It forms part of a wider set of anti-avoidance rules within the lease and leaseback provisions of the Capital Allowances Act 2001.
• The rules were introduced by Finance Act 2004 and subsequently amended by Finance Act 2008 to refine their scope and application.

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