Part 2

Plant and machinery allowances
Chapter 11

Overseas leasing

Qualifying purposes

Meaning of “short-term leasing”
121
1
Leasing of plant or machinery is short-term leasing if—
a
the number of consecutive days for which it is leased to the same person will normally be less than 30, and
b
the total number of days for which it is leased to that person in any period of 12 months will normally be less than 90.
2
Leasing of plant or machinery is also short-term leasing if—
a
the number of consecutive days for which the plant or machinery is leased to the same person will not normally exceed 365, and
b
the total length of the periods for which it is leased in any consecutive period of 4 years within the designated period to lessees in circumstances not falling within section 125(4) (other qualifying purposes: non-leasing use) will not exceed 2 years.
3
If any plant or machinery is leased as a number of items which—
a
form part of a group of items of the same or a similar description, and
b
are not separately identifiable,
all items in the group may be treated as used for short-term leasing if substantially the whole of the items in the group are so used.
4
For the purposes of subsections (1) and (2) persons who are connected with each other are to be treated as the same person.