BLM25200 | Defining long funding leases: miscellaneous definitions: market value (CAA01/S70Y(2))

For the purpose of the long funding lease legislation, the market value of any plant or machinery is to be determined on the assumption that the asset is disposed of by its absolute owner, free from all leases and other encumbrances.

This ensures that the market value of an asset is not affected by the existence of the lease

This definition of market value in CAA01/S70YI (2) applies to Chapter 6A of the Capital Allowances Act (sections 70F to s.70YI) and provisions that import that Chapter (e.g. Part 9 of CTA 2010 and Part 2 Chapter 10A of ITTOIA 2005).