Finance Act 2004 (c. 12)

SCHEDULES

SCHEDULE 23 U.K. Finance leasebacks: transitional provision

Interpretation U.K.

11 (1) In this Schedule— U.K.

• “existing leaseback” means a leaseback the term of which began before 17 March 2004;

• “pre-commencement rentals”, in relation to an existing leaseback, means—

  (a)

  any amounts payable by the lessee to the lessor under the leaseback before 17 March 2004,

  (b)

  any amounts so payable on or after 17 March 2004 in respect of a period that ends before 17 March 2004, or

(c) where any amounts are so payable on or after 17 March 2004 in respect of a period which begins before that date and ends on or after that date, the appropriate fraction of each of those amounts;

“transitional period of account” means a period of account that includes 17 March 2004.

(2) In this Schedule the “appropriate fraction”, in respect of an amount that relates to a particular period, means this fraction—

where—

“Pre-commencement Period” means the number of days in the part of the period that falls before 17 March 2004, and

“Whole Period” means the number of days in the whole of the period.