Section 402 — Corporation Tax Act 2010: “PM” where relevant company lessee under long funding lease etc

“PM” where relevant company lessee under long funding lease etc 402 1 Any amount included in the amounts mentioned in paragraph (a) or (b) of section 400(3) in respect of plant or machinery to which this section applies is to be deducted from the sum mentioned in that section.

2 But the ascribed value as at the relevant day of any plant or machinery to which this section applies is to be added to that sum or, if that sum is nil, is “PM”.

3 This section applies to plant or machinery if—

a condition A or B is met at the start of the relevant day, or b the plant or machinery is acquired by the relevant company from an associated company on the relevant day and condition A or B is met at the end of that day.

4 Condition A is that the relevant company is the lessee of the plant or machinery under a long funding finance lease or a long funding operating lease.

5 Condition B is that the relevant company is treated as the owner of the plant or machinery under section 67 of CAA 2001 (hire purchase and similar contracts).