F1Part 11ALeasing arrangements: finance leases and loans
F2Chapter 2Finance leases with return in capital form
Pt. 11A Ch. 2 inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 3 para. 3 (with Sch. 9 paras. 1-9, 22)
Introduction
614BArrangements to which this Chapter applies
1
This Chapter applies to arrangements involving the lease of an asset that meet conditions A and B.
2
Condition A is that in accordance with generally accepted accounting practice the arrangements fall to be treated as a finance lease or loan.
3
Condition B is that the effect of the arrangements is that some or all of the return on investment in respect of the finance lease or loan—
a
is or may be in the form of a sum that is not rent, and
b
would not, apart from this Part and Part 21 of CTA 2010, be wholly brought into account for tax purposes as rent from the lease of the asset.
4
It does not matter—
a
when the arrangements are or have been entered into, or
b
whether they are or have been entered into by companies or other persons.
Pt. 11A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 3 para. 2 (with Sch. 9 paras. 1-9, 22)