§ Rent factoring of leases of plant and machinery
1.44 pm§ The Paymaster General (Dawn Primarolo)I beg to move,
That provision may be made in the Finance Bill for the purposes of income tax and corporation tax in relation to arrangements for the transfer of a person's right to receive rentals under a lease of plant or machinery.The resolution paves the way for a new anti-avoidance provision relating to a newly devised arrangement for the sale of rental streams from leased plant or machinery. The new avoidance schemes have 710 emerged since the Budget, hence the need for the resolution, and depend on selling taxable lease-rental streams for sums on which tax will not be payable.The new provision, which will have effect where arrangements to sell the right to the income stream are entered into on or after 2 July, will ensure that the sums received from the sale of such rental streams are brought into account when computing income for tax purposes.
§ Question put and agreed to.