Finance Act 2006

Supplementary charge in respect of ring fence trades

2 (1) Section 501A of ICTA is amended as follows.

(2) In subsection (5), for the word “and” at the end of paragraph (d) substitute the following paragraph—

“(dd) where the company is the lessee under a long funding operating lease, the amount deductible in respect of payments under the lease in computing the profits of the lessee for the purposes of corporation tax (after first making against any such amount any reductions falling to be made by virtue of section 502K); and”.

(3) At the end of the section insert—

“(11) In this section “long funding operating lease” means a long funding operating lease for the purposes of Part 2 of the Capital Allowances Act (see section 70YI(1) of that Act).”.

(4) The amendments made by this paragraph have effect in relation to payments due on or after 1st April 2006.