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BLM81075 | Sale of lessor companies and similar arrangements: partnerships: quantifying the PM amount

From HM Revenue & Customs · Business Leasing Manual

This figure is calculated in the same way as for a company carrying on a business of leasing on its own account. See BLM80515

The following modifications are made to section 400:

  • ‘Relevant company’ is read as a reference to the partnership.

  • ‘Associated company’ is read as ‘qualifying company.

In calculating the PM figure, adjustments are made to include plant or machinery assets transferred into the partnership from qualifying companies at the start of the day.

A ‘qualifying company’ is:

  1. the partner company that you are considering

  2. any company which is an associated company of that partner company

  3. any other partner company whose interest in the business falls

  4. any other partner company in relation to which there is a qualifying change of ownership on the day; and

  5. any company which is an associated company of any other partner company mentioned in (c) or (d).