Capital Allowances Act 2001

Duties to supply information

118Certificate relating to protected leasing

(1)If—

(a)expenditure is incurred on the provision of plant or machinery, and

(b)before the expenditure has qualified for a normal writing-down allowance, the plant or machinery is used for overseas leasing which is protected leasing,

a claim for a writing-down allowance which takes account of that expenditure must be accompanied by a certificate.

(2)The certificate must specify—

(a)the description of protected leasing,

(b)the person to whom the plant or machinery has been leased, and

(c)if the certificate is given by reference to a chargeable period, all the items of plant or machinery (if more than one) relevant to that period.

(3)Subsection (1) applies, for the purposes of claims to first-year allowances, as if the references to a normal writing-down allowance and to a writing-down allowance included a first-year allowance.

(4)But nothing in subsection (3) prevents subsection (1) from continuing to apply if the use for protected leasing occurs after the expenditure has qualified for one allowance and before it qualifies for another.

119Notice of change of use of plant or machinery

(1)If—

(a)any expenditure on plant or machinery has qualified for a first-year allowance or a normal writing-down allowance, and

(b)the plant or machinery is subsequently used at any time in the designated period for overseas leasing which is not protected leasing,

the person who then owns the plant or machinery must give notice of the fact to the Inland Revenue.

(2)The notice must specify—

(a)the person who is not resident in the United Kingdom to whom the plant or machinery has been leased, and

(b)if the notice is given by reference to a chargeable period, all the items of plant or machinery (if more than one) relevant to that period.

(3)The notice must be given—

(a)no later than 3 months after the end of the chargeable period in which the plant or machinery is first used for overseas leasing which is not protected leasing, or

(b)if at the end of the 3 months the person required to give the notice does not know and cannot reasonably be expected to know that the plant or machinery is being so used, within 30 days of coming to know of it.

120Notice and joint lessees

(1)If expenditure is incurred on the provision of plant or machinery which is leased as described in section 116(1) (joint lessees: mitigation of regime), the lessor must give notice to the Inland Revenue.

(2)A notice under subsection (1) must specify—

(a)the names and addresses of the persons to whom the asset is jointly leased,

(b)the part of the expenditure properly attributable to each of them, and

(c)which of them (so far as the lessor knows) is resident in the United Kingdom.

(3)If circumstances occur such that section 117(1) or (2) (recovery of allowances) applies, the person who is then the lessor must give notice of the fact to the Inland Revenue.

(4)A notice under subsection (3) must specify—

(a)any of the joint lessees who is not resident in the United Kingdom to whom the plant or machinery has been leased, and

(b)if it is given by reference to a chargeable period, all the items of plant or machinery (if more than one) relevant to that period.

(5)A notice under this section must be given—

(a)no later than 3 months after the end of the chargeable period in which the plant or machinery is first leased as described in section 116(1) or (as the case may be) in which the circumstances referred to in subsection (3) occur, or

(b)if at the end of the 3 months the person required to give the notice does not know and cannot reasonably be expected to know that the plant or machinery is being so used, within 30 days of coming to know of it.