502LInterpretation of this ChapterU.K.
(1)This section has effect for the interpretation of this Chapter.
(2)In this Chapter—
“qualifying activity” has the same meaning as in Part 2 of the Capital Allowances Act;
“residual value”, in relation to any plant or machinery leased under a long funding operating lease, means—
(a)the estimated market value of the plant or machinery on a disposal at the end of the term of the lease,
less
(b)the estimated costs of that disposal.
(3)Any reference in this Chapter to a sum being written off on a straight line basis over a period of time (the “writing-off period”) is a reference to—
(a)the sum being apportioned between each of the periods of account in which any part of the writing-off period falls,
(b)that apportionment being made on a time basis, according to the proportion of the writing-off period that falls in each of the periods of account, and
(c)the sum being written off accordingly.
(4)Chapter 6A of Part 2 of the Capital Allowances Act (interpretation of provisions about long funding leases) applies in relation to this Chapter as it applies in relation to that Part.