SCHEDULES
SCHEDULE 10Sale etc of lessor companies etc
Part 2Leasing business carried on by a company alone
Income and matching expense in different accounting periods
3
1
This paragraph applies for corporation tax purposes if—
a
on any day (“the relevant day”) a company carries on a business of leasing plant or machinery otherwise than in partnership (see paragraphs 6 to 8),
b
the company is within the charge to corporation tax in respect of the business, and
c
there is a qualifying change of ownership in relation to the company on the relevant day (see paragraphs 10 to 13).
2
On the relevant day—
a
the company is treated as receiving an amount of income, and
b
the accounting period of the company ends.
3
The income—
a
is treated as a receipt of the business, and
b
is brought into account in calculating for corporation tax purposes the profits of the business for that accounting period.
4
On the day following the relevant day—
a
the company is treated as incurring an expense, and
b
a new accounting period of the company begins.
5
The expense—
a
is treated as an expense of the business, and
b
is allowed as a deduction in calculating for corporation tax purposes the profits of the business for that new accounting period.
6
This paragraph is supplemented by paragraphs 4 and 5.