In response to specific schemes disclosed to HMRC, there is legislation that disapplies the long funding lease rules1 in the following situations:
- Ìý
(a)ÌýÌýÌýÌý if any part of the expenditure incurred by the lessor on the acquisition of the plant or machinery leased under the relevant lease is allowable as a deduction in computing the lessor's profits for tax purposes as a result of the plant or machinery forming part of its trading stock2. This provision ensures that the restriction on the rental earnings on which the lessor is taxable (B5.406) does not apply
- Ìý
(b)ÌýÌýÌýÌý if a company or person is the lessee of any plant or machinery under a lease which is not a long funding
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Web page updated on 17 Mar 2025 17:01