Part 9 Leasing plant or machinery

Chapter 2 Long funding leases of plant or machinery

Cases where sections 360 to 369 do not apply

374 Provision supplementing section 373
(1) It does not matter whether the arrangement referred to in condition A in section 373(2) is entered into before, after or at the inception of the long funding lease.
(2) It does not matter whether the parties to any transaction which forms part of that arrangement differ from the parties to any of the other transactions.
(3) The cases in which two or more transactions are to be taken as forming part of an arrangement for the purposes of section 373 include any case in which it would be reasonable to assume that one or more of them—
(a) would not have been entered into independently of the other or others, or
(b) if entered into independently of the other or others, would not have taken the same form or been on the same terms.
(4) For the purposes of condition B in section 373(3) “the lease period” means the period which—
(a) begins with the inception of the lease, and
(b) ends with the end of the term of the lease.
(5) The reference in section 373(4) to an amount being recognised in determining a company's profit or loss for a period is to an amount being recognised for accounting purposes in—
(a) the company's profit and loss account, income statement or statement of comprehensive income for that period,
(b) the company's statement of total recognised gains and losses, statement of recognised income and expense, statement of changes in equity or statement of income and retained earnings for that period, or
(c) any other statement of items taken into account in calculating the company's profits or losses for that period.