Section 681DC | Sum obtained

(1)Condition B is that the person making the payment—

(a)obtains a capital sum in respect of the lessee's interest in the lease, and

(b)is within the charge to income tax.

(2)Condition C is that an associate of the person making the payment—

(a)obtains a capital sum by way of consideration in respect of the lessee's interest in the lease, and

(b)is within the charge to income tax.

(3)Condition D is that—

(a)the lessor's interest in the lease, or any other interest in the asset, belongs to an associate of the person making the payment,

(b)the associate obtains a capital sum in respect of the interest, and

(c)the associate is within the charge to income tax.

(4)Condition E is that—

(a)the lessor's interest in the lease, or any other interest in the asset, belongs to an associate of the person making the payment,

(b)an associate of that associate obtains a capital sum by way of consideration in respect of the interest, and

(c)the associate obtaining the sum is within the charge to income tax.

(5)Condition B, C, D or E may be met before, at or after the time when the payment is made.

(6)Condition B or C is not met if—

(a)the lease is a hire-purchase agreement for plant or machinery, and

(b)the capital sum is required to be brought into account as the whole or part of the disposal value of the plant or machinery under section 68 of CAA 2001.

(7)Condition D or E is not met if—

(a)the capital sum is obtained in respect of the lessee's interest in the lease,

(b)the lease is a hire-purchase agreement for plant or machinery, and

(c)the capital sum is required to be brought into account as the whole or part of the disposal value of the plant or machinery under section 68 of CAA 2001.