Finance (No. 2) Act 1997

Valid from 31/07/1997

47 Meaning of “finance lease”.U.K.

(1)After section 82 of the M1Capital Allowances Act 1990 there shall be inserted the following section—

“82A Meaning of “finance lease”.

(1)In this Part “finance lease” means any arrangements which—

(a)provide for machinery or plant to be leased or otherwise made available by a person (“the lessor”) to another (“the lessee”); and

(b)are such that, in cases where the lessor and persons connected with the lessor are all UK companies—

(i)the arrangements, or

(ii)arrangements in which they are comprised,

fall, in accordance with normal accountancy practice, to be treated in the accounts of one or more of those companies as a finance lease or as a loan.

(2)In this section—

  • “accounts”, in relation to a company, includes any consolidated group accounts relating to two or more companies of which that company is one;

  • “consolidated group accounts” means accounts prepared in accordance with—

    (a)

    section 227 of the M2Companies Act 1985, or

    (b)

    Article 235 of the M3Companies (Northern Ireland) Order 1986;

    and

  • “UK company” means a company incorporated in a part of the United Kingdom;

and references in this section to persons connected with each other shall be construed in accordance with section 839 of the principal Act.”

(2)This section has effect in relation to any case in relation to which the M4Capital Allowances Act 1990 has effect as amended by any of sections 44 to 46 above.

Marginal Citations