Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 2 U.K. Trading income

[F1 Chapter 10A U.K. Leases of plant or machinery: special rules for long funding leases

Textual Amendments

F1 Pt. 2 Ch. 10A, (ss 148A-148J) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13

[F2 Lessees under long funding finance leases] U.K.

Textual Amendments

F2 Pt. 2 Ch. 10A inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13

148H Lessee under long funding finance lease: termination U.K.

(1) This section applies where—

(a) a person carrying on a trade, profession or vocation is or has been the lessee under a long funding finance lease, and

(b) in connection with the termination of the lease, a payment calculated by reference to the termination value falls to be made to the person.

(2) The payment is not to be brought into account in calculating the profits of the person for any period of account.

(3) Subsection (2) does not affect the amount of any disposal value that falls to be brought into account by the person under CAA 2001.]