Introduction Lessees under long funding leases
43.Lessees under a long funding lease are entitled to claim capital allowances and when the lease ends a disposal value must be brought into account. The disposal rules (in section 70E of CAA) do not work as intended and give an unintended tax benefit in certain circumstances.
44.This measure provides a revised formula for calculating the disposal proceeds to be brought into account by the lessee under a long funding finance lease. In addition the disposal rules at section 70E of CAA now ensure that a lessee who emigrates during the period of the long funding lease brings into account an appropriate disposal value.