Section CC 12 — Income Tax Act 2007: Lessor acquiring lease asset on expiry of term of lease

CC 12 Lessor acquiring lease asset on expiry of term of lease When this section applies (1) This section applies for the purposes of section FA 10(3) (Treatment when lease ends: lessor acquiring asset), when, after the term of a finance lease,— (a) a lessor under the lease sells, assigns, or leases the personal property lease asset to another person under another finance lease; and (b) the consideration is more than the amount determined under section FA 10(2) . Income of lessor (2) To the extent to which the difference between the amount determined under section FA 10(2) and the consideration is not paid by the lessor to the lessee under the original finance lease, the amount is income of the lessor in the income year in which the original lease term ends. Defined in this Act: consideration , finance lease , income , lessee , lessor , pay , personal property lease asset , tax year Compare: 2004 No 35 s FC 8D(2)