BLM74610 | ’Income-into-capital’ schemes and back loaded leases: Back loaded leases: definition of a lease within Chapter 3

To come within Chapter 3 of Part 21 of CTA 2010, a lease must satisfy the definition in CTA2010/S927(1). All four conditions have to be satisfied:

• the lease was granted on or after 26 November 1996 (BLM74615); and

• the lease forms part of a ‘post-25 November 1996 scheme’ (BLM74630); and

• the condition in CTA10/S902(2) - that the lease must be treated as a finance lease or loan - must have been satisfied on or after 26 November 1996 (BLM74660); and

• the lease does not come within Chapter 2 of Part 21 of CTA 2010 (BLM74665).

The four conditions are discussed in turn in the following instructions.