Section 148FA — Finance Act 2008: Cases where ss. 148A to 148F do not apply: plant or machinery held as trading stock

Cases where ss. 148A to 148F do not apply: plant or machinery held as trading stock 148FA 1 Sections 148A to 148F do not apply in the case of a person carrying on a trade who is or has been the lessor of any plant or machinery under a long funding lease if the following condition is met.

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

a is (apart from those sections) allowable as a deduction in calculating the profits or losses of the trade, and b is so allowable as a result of the plant or machinery forming part of the trading stock of the trade.

3 For the purposes of this section the cases in which expenditure incurred by a person carrying on a trade 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 person 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 the trading stock of the trade at that time.

4 If—

a at any time any of sections 148A to 148F has applied for determining the amounts to be taken into account in calculating the profits or losses of the trade, and b the condition in subsection (2) is met at any subsequent time, those amounts, and any other amounts which (as a result of this section) are to be so taken into account, are subject to such adjustments as are just and reasonable.

5 All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (4).