Section 370 — Corporation Tax Act 2010: Plant or machinery held as trading stock

Plant or machinery held as trading stock 370 1 Sections 360 to 369 do not apply in relation to a long funding lease in the case of a company which is or has been the lessor of any plant or machinery under the lease if the condition in subsection (2) is met.

2 The condition is that any part of the expenditure incurred by the company on the acquisition of the plant or machinery for leasing under the lease—

a is allowable as a deduction (apart from sections 360 to 369) in calculating its profits or losses for corporation tax purposes, and b is so allowable as a result of the plant or machinery forming part of its trading stock.

3 For the purposes of this section the cases in which expenditure incurred by a company on the acquisition of any plant or machinery for leasing under a lease is allowable as such a deduction include any case where—

a the company becomes entitled to the deduction at any time after the expenditure is incurred, and b the deduction arises as a result of the plant or machinery forming part of its trading stock at that time.