(1)This section applies if—
(a)there is an unconditional obligation, under a lease of plant or machinery or a relevant arrangement, to make a relevant capital payment at any time, or
(b)a relevant capital payment is made under such a lease or arrangement otherwise than in pursuance of such an obligation.
(2)The lessor is treated for corporation tax purposes as receiving income attributable to the lease of an amount equal to the amount of the capital payment.
(3)If subsection (1)(a) applies, the income is treated as income for the period of account in which there is first an obligation of the kind mentioned there.
(4)If subsection (1)(b) applies, the income is treated as income for the period of account in which the capital payment is made.
(5)For the meaning of “capital payment” and “relevant capital payment”, see section 893.
(6)For the meaning of other expressions used in this Chapter, see section 894.