[371EELeases to UK resident companies etcU.K.
This section has no associated Explanatory Notes
(1)Non-trading finance profits fall within this section so far as they arise from a relevant finance lease in relation to which the following condition is met.
(2)The condition is that—
(a)the lease is made by the CFC (directly or indirectly)—
(i)with a UK resident company connected with the CFC, or
(ii)with a non-UK resident company connected with the CFC for the purposes of a UK permanent establishment of the non-UK resident company, and
(b)it is reasonable to suppose—
(i)that the lease is made as an alternative to the other company purchasing (directly or indirectly) the asset [(“the relevant asset”) which is the subject of the lease or making (directly or indirectly) an arrangement which would fall within subsection (3)] , and
(ii)that the main reason, or one of the main reasons, for that is a reason relating to a liability, or potential liability, of any person to tax or duty imposed under the law of any territory.
[(3)An arrangement would fall within this subsection if—
(a)the arrangement would meet one or both of the following requirements—
(i)it would not be a relevant finance lease;
(ii)it would not involve the CFC, and
(b)under the arrangement the other company would (directly or indirectly) purchase rights to use the relevant asset.]]