Commentary on Sections Glossary Structure of Part 2 Section 225: B’s qualifying expenditure if lessor not bearing non-compliance risk
818.This section is based on parts of section 76A(6), (7), (8) and (12) of CAA 1990. It prevents any allowances in sale and finance leaseback arrangements if more than half the risk to the lessor has been removed otherwise than by guarantees by persons connected with the lessor.
819.Subsection (1) defines the circumstances in which this section applies.
820.Subsection (2) states the effect of the section: the expenditure of the buyer (or of the lessor if they are not the same person) is not qualifying expenditure for capital allowances purposes.