Part 2

Plant and machinery allowances
Chapter 14

Fixtures

Introduction

Meaning of “equipment lease” and “lease”
174
1
In this Chapter “equipment lease” means—
a
an agreement entered into in the circumstances given in subsection (2), or
b
a lease entered into under or as a result of such an agreement.
2
The circumstances are that—
a
a person incurs capital expenditure on the provision of plant or machinery for leasing,
b
an agreement is entered into for the lease, directly or indirectly from that person, of the plant or machinery to another person,
c
the plant or machinery becomes a fixture, and
d
the agreement is not an agreement for the plant or machinery to be leased as part of the relevant land.
3
In this Chapter—
- “equipment lessor” means the person from whom (directly or indirectly) the equipment lease provides for the plant or machinery to be leased, and
- “equipment lessee” means the person to whom the equipment lease provides for the plant or machinery to be leased.
4
Except in the context of leasing plant or machinery, any reference in this Chapter to a lease is to—
a
any leasehold estate in or, in Scotland, lease of, the land (whether in the nature of a head-lease, sub-lease or under-lease), or
b
any agreement to acquire such an estate or, in Scotland, lease;
and, in relation to such an agreement, “grant” is to be read accordingly.