Section 681CB — Income Tax Act 2007: Leased trading assets

Leased trading assets 681CB 1 Section 681CC has effect if—

a condition A is met, and b condition B or C is met.

2 Condition A is that—

a a payment is made by a person under a lease of a relevant asset, and b a deduction is allowed for the payment in calculating the profits of a trade for income tax purposes.

3 Condition B is that—

a at a time before the lease's creation the asset was used for the purposes of the trade, and b when it was so used it was owned by the person then carrying on the trade.

4 Condition C is that—

a at a time before the lease's creation the asset was used for the purposes of another trade, b when it was so used it was owned by the person then carrying on the other trade, and c when it was so used, or later, that person was carrying on the trade mentioned in subsection (2).

5 The reference in subsection (2)(a) to a lease does not include a lease created on or before 14 April 1964.

6 In this section references to a person carrying on a trade are to the person carrying on the trade for the time being.