C1C5C4C3C7C8C9C10C13C14Part 2 Plant and machinery allowances
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)
C6C11C12C14C15F1Chapter 6AInterpretation of provisions about long funding leases
Pt. 2 Ch. 6A inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 7
Pt. 2 Ch. 6A applied (21.7.2008) by Finance Act 2008 (c. 9), Sch. 20 para. 11(12)
Pt. 2 Ch. 6A applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 33 para. 9(c)
Pt. 2 Ch. 6A applied (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 381(1), 1184(1) (with Sch. 2)
Pt. 2 Ch. 6A modified (10.6.2021) by Finance Act 2021 (c. 26), s. 17
Meaning of “plant or machinery lease”
70MDerived leases of plant or machinery: term and rentals
1
This section has effect in any case where, as a result of applying section 70L, there is a derived lease of the relevant plant or machinery.
2
This section makes provision with respect to—
a
determining whether the derived lease is a plant or machinery lease (see subsection (3)),
b
the term of the derived lease (see subsection (4)),
c
the rentals to be regarded as payable under the derived lease (see subsections (5) to (7)).
3
Any question whether the derived lease—
a
is a plant or machinery lease, or
b
if it is such a lease, whether it is also a long funding lease,
is to be determined in accordance with the provisions of this Part.
4
The term of the derived lease—
a
is limited to the remaining useful economic life of the relevant plant or machinery at the commencement of the term of the derived lease, but
b
subject to that, is to be determined in accordance with section 70YF (the “term” of a lease).
5
The rentals that are to be regarded as payable under the derived lease shall be such rentals (the “deemed rentals”) as are just and reasonable in all the circumstances of the case.
6
It shall be assumed that rentals under the derived lease are payable in equal instalments throughout the term of the lease, unless it is reasonable to draw a different conclusion from all the circumstances of the case.
7
In determining the amount of any deemed rentals, regard shall be had to—
a
all the provisions of the eligible mixed lease,
b
the nature of the relevant plant or machinery,
c
the value of the relevant plant or machinery at the commencement of the term of the derived lease,
d
the amount which, at the commencement of the term of the derived lease, is expected to be the market value of the relevant plant or machinery at the end of the term of the derived lease,
e
the remaining useful economic life of the relevant plant or machinery at the commencement of the term of the derived lease;
f
the term of the derived lease.
8
Expressions used in section 70L have the same meaning in this section.
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)