Section 894 — Corporation Tax Act 2010: Other interpretation of Chapter

Other interpretation of Chapter 894 1 This section applies for the purposes of this Chapter. 2 “ Lease ” includes—

a a licence, and b the letting of a ship or aircraft on charter or the letting of any other asset on hire, and “lessor” and “lessee” must be read accordingly. 3 “ Lease of plant or machinery ” includes a lease of plant or machinery and other property, but does not include a lease to which subsection (4) or (5) applies.

4 This subsection applies to a lease if any income attributable to it and received by the lessor would be chargeable to tax under Chapter 3 of Part 4 of CTA 2009 as profits of a UK property business.

5 This subsection applies to a lease of plant or machinery if the lessor has incurred on the plant or machinery what would be qualifying expenditure within the meaning of Part 2 of CAA 2001 but for section 34A of that Act (expenditure on plant or machinery for long funding leasing not qualifying expenditure). 6 “ Relevant arrangement ” means any agreement or arrangement relating to a lease of plant or machinery, including one made before the lease is entered into or after it has ended.

7 Accordingly, “lessor” and “lessee” include prospective and former lessors and lessees.