SCHEDULE 20 Leases of Plant or Machinery
Finance Act 2008 (2008 c 9) | Legislation

SCHEDULE 20 Leases of Plant or Machinery

Section 55

Capital received in respect of lease to be treated as income

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(1)     In ITA 2007, after section 809 insert—

“Chapter 6
Avoidance Involving Leases of Plant and Machinery
809ZA Plant and machinery leases: capital receipts to be treated as income

(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 income tax purposes as receiving income attributable to the lease of an amount equal to the amount of the capital payment.

(3)     The income is treated—

(a)     if subsection (1)(a) applies, as income for the period of account in which there is first an obligation of the kind mentioned there, and

(b)     if subsection (1)(b) applies, as income for the period of account in which the payment is made.

809ZB Section 809ZA: interpretation

(1)     The expressions used in section 809ZA and this section are to be interpreted

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