Part 2 Plant and machinery allowances

Chapter 17Other anti-avoidance

Finance leases and certain operating leases

219 Meaning of “finance lease”

(1)

In this Chapter “finance lease” means any arrangements—

(a)

which provide for plant or machinery to be leased or otherwise made available by a person (“the lessor”) to another person (“the lessee”), and

(b)

which, under F1generally accepted accounting practice

(i)

fall (or would fall) to be treated, in the accounts of the lessor or a person connected with the lessor, as a finance lease or a loan, or

(ii)

are comprised in arrangements which fall (or would fall) to be so treated.

F2...

(2)

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

In this section “accounts”, in relation to a company, includes any accounts which—

(a)

relate to two or more companies of which that company is one, and

F4(b)

are drawn up in accordance with generally accepted accounting practice.