864Leased trading assetsU.K.
(1)Section 865 has effect if—
(a)condition A is met, and
(b)condition B or C is met.
(2)Condition A is that—
(a)a payment is made by a company under a lease of a relevant asset, and
(b)a deduction is allowed for the payment in calculating the profits of a trade for corporation tax purposes.
(3)Condition B is that—
(a)at a time before the lease's creation the asset was used for the purposes of the trade, and
(b)when it was so used it was owned by the person then carrying on the trade.
(4)Condition C is that—
(a)at a time before the lease's creation the asset was used for the purposes of another trade, or for the purposes of a profession or vocation,
(b)when it was so used it was owned by the person then carrying on the other trade, or the profession or vocation, and
(c)when it was so used, or later, that person was carrying on the trade mentioned in subsection (2).
(5)The reference in subsection (2)(a) to a lease does not include a lease created on or before 14 April 1964.
(6)In this section references to a person carrying on a trade, profession or vocation are to the person carrying on the trade, profession or vocation for the time being.