B5.410 Leases—anti-avoidance provisions for assets other than land—overview
There are anti-avoidance provisions which prevent a person (X) from obtaining excessive tax relief in the following circumstances:
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(a)ÌýÌýÌýÌý X holds an asset (a relevant asset) for which he obtains tax relief (see below) for rentals under a lease which provides for a very high rent for the first few years
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(b)ÌýÌýÌýÌý thereafter X pays a nominal amount of rent for the asset, so that his lease has a value which he can realise
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(c)ÌýÌýÌýÌý X sells their interest in the lease to Y for a capital sum
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(d)ÌýÌýÌýÌý if X wishes to continue using the asset X can obtain a sub lease from
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