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Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.3 Plant and machinery /Long funding leases of plant and machinery / B3.340Z Long funding leases of plant and machinery—election by lessor to treat a lease as a long funding lease
Commentary

B3.340Z Long funding leases of plant and machinery—election by lessor to treat a lease as a long funding lease


Business tax

Regulations1 set out the conditions under which a lessor may elect to treat all his eligible leases and qualifying incidental leases as long funding leases in circumstances where they would not be so treated. An election does not affect the lessee under the lease.

An eligible lease is one which satisfies the following conditions2:

  1. Ìý

    (1)ÌýÌýÌýÌý It must be a lease of plant or machinery

  2. Ìý

    (2)ÌýÌýÌýÌý It must not be a long funding lease

  3. Ìý

    (3)ÌýÌýÌýÌý The term of the lease must be at least 12 months

  4. Ìý

    (4)ÌýÌýÌýÌý The plant or machinery:

    1. Ìý

      –ÌýÌýÌýÌý was unused and not second-hand at the commencement of the lease, or

    2. Ìý

      –

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