Part 9Leasing plant or machinery
Chapter 4Sales of lessors: leasing business carried on by a company in partnership
“Business of leasing plant or machinery”
410“Business of leasing plant or machinery”
1
A business carried on by the partnership is a business of leasing plant or machinery on the relevant day if condition A or B is met.
2
Condition A is that at least half of the relevant plant or machinery value relates to F2 plant or machinery falling within subsection (6).
3
Subsection (2) is supplemented by section 411.
F34
Condition B is that at least half of the partnership's income in the past 12 months derives from plant or machinery falling within subsection (6).
5
Subsection (4) is supplemented by section 414.
F16
Plant or machinery falls within this subsection if—
a
it is or at any time in the past 12 months has been leased out by the partnership or a qualifying associate,
b
the lease under which it is or has been leased out is a plant or machinery lease but not an excluded lease of background plant or machinery for a building (see section 437(3)), and
c
if the plant or machinery satisfies paragraph (a) only because it is or has been leased out by a qualifying associate, the lessee under the lease is or was someone other than the partnership.
7
For the purposes of subsection (6)—
a
plant or machinery is “leased out” by a person if it is subject to a plant or machinery lease under which that person is a lessor,
b
“ associate ” means a person who is a partner in the partnership or connected with a partner in the partnership (see also subsection (8)), and
c
a person is a “qualifying associate” if the person is an associate at the start of the relevant day or at any earlier time in the past 12 months (whether or not a time when the plant or machinery was leased out by the person).
8
In relation to a corporate partner who is owned by a consortium or is a qualifying 75% subsidiary of a company owned by a consortium, the reference in subsection (7)(b) to a person connected with a partner also includes—
a
any member of the consortium, and
b
any person connected with such a member.
9
A reference in this section to the past 12 months is to the period of 12 months ending with the relevant day.