Finance Act 2009

Capital receipts treated as income

This sectionnoteType=Explanatory Notes has no associated

9(1)Section 785C of ICTA (plant and machinery leases: capital receipts to be treated as income: interpretation) is amended as follows.

(2)In subsection (6), for “subsection (9)” substitute “subsections (9) and (9A)”.

(3)In subsection (9)—

(a)in paragraph (a), insert at the end “or”, and

(b)omit paragraph (c) (and the “or” before it).

(4)After subsection (9) insert—

(9A)Where—

(a)a capital payment is an initial payment under a long-funding lease, and

(b)under section 61 of the Capital Allowances Act (disposal events and disposal values), the commencement of the term of the lease is an event that requires the lessor to bring a disposal value into account,

the capital payment is only “relevant” to the extent that it exceeds the disposal value.”

(9B)“Commencement”, “disposal value”, “initial payment”, “long funding lease” and “the term” have the same meaning as in Part 2 of the Capital Allowances Act.