C1Part 2 Plant and machinery allowances

Annotations:
Modifications etc. (not altering text)

Chapter 11 Overseas leasing

Qualifying purposes

121 Meaning of “short-term leasing”

1

Leasing of plant or machinery is short-term leasing if—

a

the number of consecutive days for which it is leased to the same person will normally be less than 30, and

b

the total number of days for which it is leased to that person in any period of 12 months will normally be less than 90.

2

Leasing of plant or machinery is also short-term leasing if—

a

the number of consecutive days for which the plant or machinery is leased to the same person will not normally exceed 365, and

b

the total length of the periods for which it is leased in any consecutive period of 4 years within the designated period to lessees in circumstances not falling within section 125(4) (other qualifying purposes: non-leasing use) will not exceed 2 years.

3

If any plant or machinery is leased as a number of items which—

a

form part of a group of items of the same or a similar description, and

b

are not separately identifiable,

all items in the group may be treated as used for short-term leasing if substantially the whole of the items in the group are so used.

4

For the purposes of subsections (1) and (2) persons who are connected with each other are to be treated as the same person.