Corporation Tax Act 2010
Sections and provisions with full text and the judgments that cite each one.
Section 856 — Position where lease may be ended
Position where lease may be ended 856 1 This section applies if under the new lease the lessor, or L or a person linked to L, has power to end the lease before the end of the term for which it was…
Section 857 — Position where lease may be varied
Position where lease may be varied 857 1 This section applies if under the new lease L, or a person linked to L, has power to vary, in a manner beneficial to L or a person linked to L, obligations…
Section 858 — Lease treated as ending: rentcharge
Lease treated as ending: rentcharge 858 1 Subsection (2) applies if a rentcharge payable by L, or a person linked to L, is secured on all or part of the property subject to the new lease. 2 For the…
Section 859 — Lease varied to provide for increased rent
Lease varied to provide for increased rent 859 1 This section applies if each of conditions A to D is met. 2 Condition A is that— a a company (“ the lessee ”) is a lessee of land under a lease which…
Section 860 — Relevant corporation tax relief
Relevant corporation tax relief 860 For the purposes of this Chapter each of the following is a deduction by way of relevant corporation tax relief— a a deduction in calculating profits or losses of…
Section 861 — Linked persons
Linked persons 861 1 In this Chapter references to a person linked to L are to a person who is— a a partner of L, b an associate of L, or c an associate of a partner of L. 2 “Associate” must be read…
Section 862 — Lease, lessee, lessor and rent
Lease, lessee, lessor and rent 862 1 This section applies for the purposes of this Chapter. 2 “ Lease ” includes— a an agreement for a lease, and b any tenancy. 3 “ Lease ” does not include a…
Section 863 — Overview of Chapter
Overview of Chapter 863 This Chapter provides that, in certain circumstances where a payment is made under a lease of a trading asset, corporation tax relief for the payment is restricted.
Section 864 — Leased trading assets
Leased trading assets 864 1 Section 865 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 company under a lease of a relevant asset,…
Section 865 — Tax deduction not to exceed commercial rent
Tax deduction not to exceed commercial rent 865 1 The rules in subsection (3) apply to the calculation of the deduction by way of relevant corporation tax relief allowed in an accounting period— a…
Section 866 — Long funding finance leases
Long funding finance leases 866 1 This section applies for the purposes of section 865. 2 A payment must be excluded so far as, in the case of the lessee, it is to be regarded in accordance with…
Section 867 — Commercial rent
Commercial rent 867 1 Subsection (3) applies for the purpose of making a comparison under rule 4 of section 865(3). 2 In this section “ the actual lease ” means the lease mentioned in section…
Section 868 — Lease
Lease 868 1 This section applies for the purposes of this Chapter. 2 A lease is (in relation to an asset) an agreement or arrangement under which payments are made for the use of or otherwise in…
Section 869 — Relevant asset
Relevant asset 869 For the purposes of this Chapter a relevant asset is any description of property or rights other than land or an interest in land.
Section 870 — Overview of Chapter
Overview of Chapter 870 This Chapter provides that in certain circumstances where a payment is made under a lease of an asset, and a capital sum is obtained in respect of an interest in the asset,…
Section 871 — Application of the Chapter
Application of the Chapter 871 This Chapter applies if— a condition A is met (see section 872), and b condition B, C, D or E is met (see section 873).
Section 872 — Payment under lease
Payment under lease 872 1 Condition A is that— a a payment is made under a lease of a relevant asset, and b the payment is one for which a deduction by way of relevant tax relief is allowed. 2…
Section 873 — Sum obtained
Sum obtained 873 1 Condition B is that the person making the payment— a obtains a capital sum in respect of the lessee's interest in the lease, and b is a company within the charge to corporation…
Section 874 — Charge to corporation tax
Charge to corporation tax 874 1 The company obtaining the capital sum is to be treated as receiving, at the time the sum is obtained, an amount— a which is equal to the chargeable amount, and b to…
Section 875 — Hire-purchase agreements
Hire-purchase agreements 875 1 This section applies if— a the lease is a hire-purchase agreement (as defined in section 1129), and b the capital sum is obtained in respect of the lessee's interest in…
Section 876 — Adjustments where sum obtained before payment made
Adjustments where sum obtained before payment made 876 1 This section applies if a capital sum is obtained as mentioned in section 873 and later a payment is made as mentioned in section 872. 2…
Section 877 — Sum obtained in respect of interest
Sum obtained in respect of interest 877 A reference in this Chapter to a sum obtained in respect of an interest in an asset (whether the lessee's interest in a lease of the asset or the lessor's…
Section 878 — Sum obtained in respect of lessee's interest
Sum obtained in respect of lessee's interest 878 1 This section applies to a reference in this Chapter to a sum obtained in respect of the lessee's interest in a lease of an asset. 2 The reference…
Section 879 — Disposal of interest to associate
Disposal of interest to associate 879 1 This section applies for the purposes of this Chapter if a company disposes of an interest in an asset to a person who is the company's associate (and the…
Section 880 — Apportionment of payments made and of sums obtained
Apportionment of payments made and of sums obtained 880 1 This section applies for the purposes of this Chapter. 2 Subsection (3) applies if— a a payment is made, b it is one for which a deduction by…
Section 881 — Manner of apportionment
Manner of apportionment 881 1 Subsections (2) and (3) apply if— a a payment or sum is to be apportioned under section 880 or under section 681DJ of ITA 2007, b at the time of the apportionment it…
Section 882 — Associates
Associates 882 1 This section applies for the purposes of this Chapter. 2 Persons are associates if they are associated with each other. 3 The following are associated with each other— a an…
Section 883 — Capital sum
Capital sum 883 For the purposes of this Chapter a capital sum is any sum of money, or any money's worth, except so far as it or any part of it— a is to be treated for corporation tax purposes as a…
Section 884 — Lease
Lease 884 1 This section applies for the purposes of this Chapter. 2 A lease is (in relation to an asset) an agreement or arrangement under which payments are made for the use of or otherwise in…
Section 885 — Relevant asset
Relevant asset 885 For the purposes of this Chapter a relevant asset is any description of property or rights other than land or an interest in land.
Section 886 — Relevant tax relief
Relevant tax relief 886 For the purposes of this Chapter each of the following is a deduction by way of relevant tax relief— a a deduction in calculating profits or losses of a trade for corporation…
Section 887 — When restrictions on leasing partnership losses under this Chapter apply
When restrictions on leasing partnership losses under this Chapter apply 887 1 The restrictions in section 888 (restrictions on leasing partnership losses) apply if— a a company carries on a business…
Section 888 — Restrictions on leasing partnership losses
Restrictions on leasing partnership losses 888 1 The restrictions in subsections (2) to (4) apply in respect of so much of the loss incurred by the company in its notional business as derives from…
Section 889 — Interpretation of Chapter
Interpretation of Chapter 889 1 In this Chapter— “ lease ” includes an underlease, sublease, tenancy or licence and an agreement for any of those things, “ notional business ”, in relation to a…
Section 890 — Capital payments in respect of leases treated as income
Capital payments in respect of leases treated as income 890 1 This section applies if— a there is an unconditional obligation, under a lease of plant or machinery or a relevant arrangement, to make a…
Section 891 — Apportionments for leases of plant or machinery and other property
Apportionments for leases of plant or machinery and other property 891 1 This section applies if section 890 applies in relation to a lease of plant or machinery and other property (see section…
Section 892 — Deduction where failure to make relevant capital payment expected
Deduction where failure to make relevant capital payment expected 892 1 This section applies for corporation tax purposes if— a section 890 applies as a result of subsection (1)(a) of that section,…
Section 893 — Meaning of “capital payment”, “relevant capital payment” etc
Meaning of “capital payment”, “relevant capital payment” etc 893 1 This section gives the meaning of “capital payment”, “relevant capital payment” and references to payment for the purposes of this…
Section 894 — 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…
Section 894A — Consideration for taking over payment obligations as lessee treated as income
Consideration for taking over payment obligations as lessee treated as income 894A 1 This section applies where under any arrangements— a a company chargeable to corporation tax (C) agrees to take…
Section 895 — Overview of Part
Overview of Part 895 1 This Part makes provision for corporation tax purposes about the taxation of leasing arrangements. 2 Chapter 2 makes provision in relation to certain arrangements involving the…
Section 896 — Normal rent
Normal rent 896 1 For the purposes of this Part, the “normal rent” in respect of a lease for a period of account of the lessor (“L”) is the amount specified in subsection (2). 2 That amount is the…
Section 897 — Accountancy rental earnings
Accountancy rental earnings 897 1 For the purposes of this Part, the “accountancy rental earnings” in respect of a lease for a period of account of the lessor (“L”) is the greatest of the amounts…
Section 898 — Rental earnings
Rental earnings 898 1 In this Part “the rental earnings” for any period in respect of a lease of an asset in the case of any person or any consolidated group accounts is the amount specified in…
Section 899 — Arrangements to which this Chapter applies
Arrangements to which this Chapter applies 899 1 This Chapter applies to arrangements involving the lease of an asset that meet conditions A and B. 2 Condition A is that in accordance with generally…
Section 900 — Purposes of this Chapter
Purposes of this Chapter 900 1 This section sets out the main purposes of this Chapter where there are any arrangements to which this Chapter applies. 2 The first main purpose is, in relation to a…
Section 901 — Application of this Chapter
Application of this Chapter 901 1 This Chapter applies if— a a lease of an asset is or has been granted, and b the conditions in section 902 are or have been met in relation to the lease at some time…
Section 902 — The conditions referred to in section 901(1)
The conditions referred to in section 901(1) 902 1 This section sets out the conditions required by section 901(1) to be met for this Chapter to apply (conditions A to E). 2 Condition A is that at…
Section 903 — Provisions supplementing section 902
Provisions supplementing section 902 903 1 In section 902— “ the relevant accounting period ”, in relation to a major lump sum, means— the accounting period of the lessor (“L”) which is related to…
Section 904 — The arrangements and circumstances referred to in section 902(8)
The arrangements and circumstances referred to in section 902(8) 904 1 The arrangements referred to in section 902(8)(a) are arrangements under which— a the lessee or a person connected with the…