Section 64A | Leased assets: arrangements reducing disposal value of asset ^F1

(1)Where—^F1

(a)plant or machinery (“the asset”) is subject to a lease,^F1

(b)a disposal event occurs with the result that a disposal value in respect of the asset is to be brought into account under Item 1, 2 or 7 of the Table in section 61(2), and^F1

(c)arrangements have been entered into that have the effect of reducing the disposal value of the asset in so far as it is attributable to rentals payable under the lease,^F1

the disposal value is to be determined as if the arrangements had not been entered into.

(2)Subsection (1) does not apply if—^F1

(a)the arrangements take the form of a transfer of relevant receipts within section 809AZA of ITA 2007 and the relevant amount has been treated as income under section 809AZB of that Act, or^F1

(b)the arrangements take the form of a transfer of relevant receipts within section 752 of CTA 2010 and the relevant amount has been treated as income under section 753 of that Act.^F1