PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
Chapter 5ASpecial rules for long funding leases of plant or machinery: corporation tax
F1Lessors under long funding finance leases
C1C2502CLessor under long funding finance lease: exceptional items
1
This section applies for determining for the purposes of corporation tax the profits of a company which is or has been the lessor under a long funding finance lease.
2
This section has effect where a profit or loss (whether of an income or capital nature)—
a
arises to the company in connection with the lease, and
b
in accordance with generally accepted accounting practice falls to be recognised for accounting purposes in a period of account, but
c
would not, apart from this section, be brought into account in computing the profits of the company for the purposes of corporation tax.
3
The profit or loss is to be treated—
a
in the case of a profit, as income of the company attributable to the lease,
b
in the case of a loss, as a revenue expense incurred by the company in connection with the lease.
4
Any reference in this section to an amount falling to be recognised for accounting purposes in a period of account is a reference to an amount falling to be recognised for accounting purposes—
a
in the company's profit and loss account or income statement,
b
in the company's statement of recognised gains and losses or statement of changes in equity, or
c
in any other statement of items brought into account in computing the company's profits or losses for that period.
Pt. 12 Ch. 5A (ss. 502A-502L) inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 11