SCHEDULES
SCHEDULE 7 Transfer schemes relating to BBC transmission network: taxation provisions
Corporation tax: leased assets
24
1
For the purposes of section 781 of the Taxes Act 1988 (assets leased to traders and others) where the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred in accordance with a transfer scheme to the BBC or a transferee, the transfer shall be treated as being effected without any capital sum having been obtained in respect of that interest by the BBC or the transferee.
2
Section 782 of the Taxes Act 1988 (deduction of payment under leases: special cases) shall not apply to any payments made by the BBC or a company which is a transferee under a transfer scheme if the payments are made—
a
under any lease created in favour of the BBC or such a company by virtue of, or in pursuance of an obligation imposed by, a provision contained in a transfer scheme by virtue of paragraph 2 of Schedule 5; or
b
under any lease—
i
which is granted to or by a successor company at a time when it remains a wholly-owned subsidiary of the BBC; and
ii
which is a lease of an asset which at any time before the creation of the lease was used by the BBC for the purposes of a trade carried on by the BBC and which was, when so used, owned by the BBC.
3
In this paragraph “lease” and “asset” have the meaning given by section 785 of the Taxes Act 1988.