Part 2Plant and machinery allowances
Chapter 6Hire-purchase etc. and plant or machinery provided by lessee
Hire-purchase and similar contracts
67Plant or machinery treated as owned by person entitled to benefit of contract, etc.
1
This section applies if—
a
a person carrying on a qualifying activity incurs capital expenditure on the provision of plant or machinery for the purposes of the qualifying activity, and
b
the expenditure is incurred under a contract providing that the person shall or may become the owner of the plant or machinery on the performance of the contract.
2
The plant or machinery is to be treated for the purposes of this Part as owned by the person (and not by any other person) at any time when he is entitled to the benefit of the contract so far as it relates to the plant or machinery.
3
At the time when the plant or machinery is brought into use for the purposes of the qualifying activity, the person is to be treated for the purposes of this Part as having incurred all capital expenditure in respect of the plant or machinery to be incurred by him under the contract after that time.
4
If a person—
a
is treated under subsection (2) as owning plant or machinery,
b
ceases to be entitled to the benefit of the contract in question so far as it relates to that plant or machinery, and
c
does not then in fact become the owner of the plant or machinery,
the person is to be treated as ceasing to own the plant or machinery at the time when he ceases to be entitled to the benefit of the contract.
5
This section is subject to section 69 (hire-purchase and fixtures) and subsection (3) is subject to section 229 (anti-avoidance).