Finance leasesU.K.
219 Meaning of “finance lease”U.K.
(1)In this Chapter “finance lease” means any arrangements—
(a)which provide for plant or machinery to be leased or otherwise made available by a person (“the lessor”) to another person (“the lessee”), and
(b)which, under [F1generally accepted accounting practice]—
(i)fall (or would fall) to be treated, in the accounts of the lessor or a person connected with the lessor, as a finance lease or a loan, or
(ii)are comprised in arrangements which fall (or would fall) to be so treated.
(2)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)In this section “accounts”, in relation to a company, includes any accounts which—
(a)relate to two or more companies of which that company is one, and
[F3(b)are drawn up in accordance with generally accepted accounting practice.]
Textual Amendments
F1Words in s. 219(1) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(g)
F2S. 219(2) repealed (with effect as mentioned in s. 107 of the amending Act) by Finance Act 2002 (c. 23), s. 141, Sch. 40 Pt. 3(16)
F3S. 219(3)(b) substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 4 para. 33
220 Allocation of expenditure to a chargeable periodU.K.
(1)Subject to subsection (2), if a person incurs at any time in a chargeable period capital expenditure on the provision of plant or machinery for leasing under a finance lease—
(a)the part of the expenditure which is proportional to the part of that chargeable period falling before that time is not to be taken into account in determining that person’s available qualifying expenditure for that period, but
(b)this does not prevent that part of the expenditure being taken into account in determining that person’s available qualifying expenditure for any subsequent chargeable period.
(2)Subsection (1)(a) does not apply to a chargeable period if a disposal event occurs in that period in respect of the plant or machinery.