Budget 2010 – Sale of lessor companies
Changes have been announced to the measures announced in the Pre-Budget report which allow lessor companies that provide leased plant and machinery to elect for an alternative treatment, which recoups the tax timing benefit, when sold. This new option was available from 9 December 2009.
The effect of the election is to isolate the profits of the business following the sale of the company rather than through the imposition of an immediate charge.
The Budget refinements ensure that the new election operates fairly and that the full amount of tax will be collected on the profits of the leasing business following the sale. The additional changes announced as part of the Budget will have effect on or after 24 March 2010.