Part 2

Plant and machinery allowances
Chapter 11

Overseas leasing

Basic terms

“Leasing”, “overseas leasing” etc.
105
1
In this Chapter—
a
“leasing” includes letting a ship or aircraft on charter or letting any other asset on hire, and
b
references to a lease include a sub-lease (and references to a lessor or lessee are to be read accordingly).
2
Plant or machinery is used for overseas leasing if it is used for the purpose of being leased to a person who—
a
is not resident in the United Kingdom, and
b
does not use the plant or machinery exclusively for earning profits chargeable to tax.
2A
In determining whether plant or machinery is used for overseas leasing, no account shall be taken of any lease finalised, within the meaning of Part 4 of Schedule 8 to
FA
2006, on or after 1st April 2006.
3
In this Chapter “profits chargeable to tax”—
a
includes profits chargeable under section 1313(2) of CTA 2009 (profits from exploration and exploitation of the seabed etc.), but
b
excludes profits arising to a person who, under double taxation arrangements, is afforded or is entitled to claim any relief from the tax chargeable on those profits.
4
“Double taxation arrangements” means arrangements which have effect under section 2(1) of the Taxation (International and Other Provisions) Act 2010 (double taxation relief by agreement with territories outside the United Kingdom).
5
“Protected leasing” of plant or machinery means—
a
short-term leasing of the plant or machinery (as defined in section 121), or
b
if the plant or machinery is a ship, aircraft or transport container, the use of the ship, aircraft or transport container for a qualifying purpose under section 123 or 124 (letting on charter to UK resident etc.).
6
In this Chapter “qualifying activity” includes (subject to any provision to the contrary) any activity listed in section 15(1) even if any profits or gains from it are not chargeable to tax.
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
S. 105(2A) inserted (19.7.2006) by Finance Act 2006 (c. 25), Sch. 9 para. 13(2)
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Words in s. 105(3)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 483 (with Sch. 2 Pts. 1, 2)
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Word in s. 105(2A) substituted (21.7.2009) by Finance Act 2009 (c. 10), s. 126(5)(a)
Words in s. 105(4) substituted (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 58 (with Sch. 9 paras. 1-9, 22)
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)