Income Tax Act 2007

This section has no associated Explanatory Notes

(1)Section 681CC has effect if—

(a)condition A is met, and

(b)condition B or C is met.

(2)Condition A is that—

(a)a payment is made by a person under a lease of a relevant asset, and

(b)a deduction is allowed for the payment in calculating the profits of a trade for income tax purposes.

(3)Condition B is that—

(a)at a time before the lease's creation the asset was used for the purposes of the trade, and

(b)when it was so used it was owned by the person then carrying on the trade.

(4)Condition C is that—

(a)at a time before the lease's creation the asset was used for the purposes of another trade,

(b)when it was so used it was owned by the person then carrying on the other trade, and

(c)when it was so used, or later, that person was carrying on the trade mentioned in subsection (2).

(5)The reference in subsection (2)(a) to a lease does not include a lease created on or before 14 April 1964.

(6)In this section references to a person carrying on a trade are to the person carrying on the trade for the time being.]

Textual Amendments