Textual Amendments
F1Pt. 2 Ch. 10A, (ss 148A-148J) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13
Textual Amendments
F2S. 148FA and cross-heading inserted (with effect in accordance with Sch. 20 para. 10(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 10(2)
(1)Sections 148A to 148F do not apply in the case of a person carrying on a trade who is or has been the lessor of any plant or machinery under a long funding lease if the following condition is met.
(2)The condition is that any part of the expenditure incurred by the person on the acquisition of the plant or machinery for leasing under the lease—
(a)is (apart from those sections) allowable as a deduction in calculating the profits or losses of the trade, and
(b)is so allowable as a result of the plant or machinery forming part of the trading stock of the trade.
(3)For the purposes of this section the cases in which expenditure incurred by a person carrying on a trade on the acquisition of any plant or machinery for leasing under a lease is allowable as such a deduction include any case where—
(a)the person becomes entitled to the deduction at any time after the expenditure is incurred, and
(b)the deduction arises as a result of the plant or machinery forming part of the trading stock of the trade at that time.
(4)If—
(a)at any time any of sections 148A to 148F has applied for determining the amounts to be taken into account in calculating the profits or losses of the trade, and
(b)the condition in subsection (2) is met at any subsequent time,
those amounts, and any other amounts which (as a result of this section) are to be so taken into account, are subject to such adjustments as are just and reasonable.
(5)All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (4).]
(1)This section applies if—
(a)a person is the lessee of any plant or machinery under a lease (“lease A”) that is not a long funding lease,
(b)the person enters into a lease (“lease B”) of any of that plant or machinery (as lessor), and
(c)lease B is a long funding lease.
(2)Sections 148A to 148F do not apply in relation to lease B.
(3)If by virtue of section 70H of CAA 2001 (tax return by lessee treating lease as long funding lease) lease A becomes a long funding lease (and does not cease to be such a lease), treat this section as never having applied in relation to lease B.]
Textual Amendments
F3S. 148FB inserted (with effect in accordance with Sch. 20 para. 10(6) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 10(3)
(1)Sections 148A to 148F do not apply in the case of a person carrying on a trade who is or has been the lessor of any plant or machinery under a long funding lease if conditions A to C are met.
(2)Condition A is that the long funding lease forms part of any arrangement entered into by the person which includes one or more other transactions (whether the arrangement is entered into before or after or at the inception of the lease).
(3)Condition B is that the main purpose, or one of the main purposes, of the arrangement is to secure that, over the relevant period, there would be a substantial difference between—
(a)the total amount of the amounts under the arrangement which are, in accordance with generally accepted accounting practice, recognised in determining the profit or loss of the trade for any period or taken into account in calculating the amounts which are so recognised, and
(b)the total amount of the amounts under the arrangement which are taken into account in calculating the profits or losses of the trade.
(4)For the purposes of condition B “the relevant period” means the period which begins with the inception of the lease and ends with the end of the term of the lease.
(5)Condition C is that the difference would be attributable (wholly or partly) to the application of any of sections 148A to 148F in relation to the person by reference to the plant or machinery under the lease.
(6)The reference in this section to an amount being recognised in determining the profit or loss of a trade for a period is to an amount being recognised for accounting purposes—
(a)in the profit and loss account or income statement relating to the trade,
(b)in the statement of recognised gains and losses or statement of changes in equity relating to the trade, or
(c)in any other statement of items brought into account in calculating the profits and losses of the trade for that period.
(7)For the purposes of this section it does not matter whether the parties to any transaction which forms part of the arrangement differ from the parties to any of the other transactions.
(8)For the purposes of this section the cases in which two or more transactions are to be taken as forming part of an arrangement include any case in which it would be reasonable to assume that one or more of them—
(a)would not have been entered into independently of the other or others, or
(b)if entered into independently of the other or others, would not have taken the same form or been on the same terms.
(9)If—
(a)at any time any of sections 148A to 148F has applied for determining the amounts to be taken into account in calculating the profits or losses of the trade, and
(b)conditions A to C are met at any subsequent time,
those amounts, and any other amounts which (as a result of this section) are to be so taken into account, are subject to such adjustments as are just and reasonable.
(10)All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (9).]
Textual Amendments
F4S. 148FC inserted (with effect in accordance with Sch. 20 para. 10(7) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 10(4)
(1)If a person is or has been a lessor under a long funding lease of a film, sections 148A to 148F do not apply in respect of the lease.
(2)“Film” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act).]]
Textual Amendments
F5S. 148FD inserted (with effect in accordance with Sch. 33 para. 3 of the amending Act) by Finance Act 2009 (c. 10), Sch. 33 para. 2 (with Sch. 33 para. 9)