Part 2Trading income
F1Chapter 10ALeases of plant or machinery: special rules for long funding leases
F2Interpretation of this Chapter
Pt. 2 Ch. 10A inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13
148JInterpretation of Chapter 10A
1
This section has effect for the interpretation of this Chapter.
2
In this Chapter—
“qualifying activity” has the same meaning as in Part 2 of CAA 2001;
“residual value”, in relation to any plant or machinery leased under a long funding operating lease, means—
- a
the estimated market value of the plant or machinery on a disposal at the end of the term of the lease,
less
- b
the estimated costs of that disposal.
- a
3
Any reference in this Chapter to a sum being written off on a straight line basis over a period of time (the “writing-off period”) is a reference to—
a
the sum being apportioned between each of the periods of account in which any part of the writing-off period falls,
b
that apportionment being made on a time basis, according to the proportion of the writing-off period that falls in each of the periods of account, and
c
the sum being written off accordingly.
4
Chapter 6A of Part 2 of CAA 2001 (interpretation of that Part so far as relating to long funding leases) also applies for the purposes of this Chapter.
Pt. 2 Ch. 10A, (ss 148A-148J) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13