Part 11ALeasing arrangements: finance leases and loans
F1Chapter 3Other finance leases
Introduction
614CAPurpose of this Chapter
(1)
The main purpose of this Chapter where there are arrangements to which this Chapter applies is to charge a person entitled to the lessor's interest under the lease of the asset to income tax on amounts of income determined as mentioned in subsection (2).
(2)
The amounts referred to in subsection (1) are determined by reference to the amounts that fall for accounting purposes to be treated, in accordance with generally accepted accounting practice, as the income return on and after 26 November 1996 on investment in respect of the finance lease or loan.
(3)
The amounts referred to in subsection (1) are also determined taking into account the substance of the matter as a whole, including, in particular, the state of affairs—
(a)
as between connected persons, or
(b)
within a group of companies,
as reflected or falling to be reflected in accounts of any of those persons or in consolidated group accounts.