Anti-avoidance measures were introduced by Finance Act 2016 to:

  • Enable the disposal value of plant and machinery to be amended where one of the main purposes of the transaction is to obtain a tax advantage by receiving a reduced balancing charge or increased allowance.
  • Ensure that where a company takes over a lease from another person, and receives a tax deduction for payments made under that lease, that the company will always be charged to tax on any amount that it receives in return for taking over that lease.

This measure applies to transactions that take place on or after 25 November 2015 and affects businesses who: 

  • Manipulate disposal values leading to increased capital allowances, or
  • Receive non taxable consideration for agreeing to take over tax deductible lease payments.