(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 [F1 plant or machinery falling within subsection (6)].
(3)Subsection (2) is supplemented by section 411.
[F2(4)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.
[F3(6)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.]
Textual Amendments
F1Words in s. 410(2) substituted (with effect in accordance with Sch. 6 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 6 para. 11(2)
F2S. 410(4) substituted (with effect in accordance with Sch. 6 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 6 para. 11(3)
F3S. 410(6)-(9) substituted for s. 410(6)(7) (with effect in accordance with Sch. 6 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 6 para. 11(4)