Part 2 Plant and machinery allowances
Chapter 17Other anti-avoidance
F1Finance leaseback: parties' income and profits
F2228AApplication of sections 228B and 228C
(1)
Sections 228B and 228C apply where plant or machinery is the subject of a lease and finance leaseback.
(2)
Plant or machinery is the subject of a lease and finance leaseback if—
(a)
a person (“S”) leases the plant or machinery to another (“B”),
(b)
after the date of that transaction, the use of the plant or machinery falls within sub-paragraph (i), (ii) or (iii) of section 221(1)(b), and
(c)
it is directly as a consequence of having been leased under a finance lease that the plant or machinery is available to be so used after that date.
(3)
For the purposes of subsection (2), S leases the plant or machinery to B only if—
(a)
S grants B rights over the plant or machinery,
(b)
consideration is given for that grant, and
(c)
S is not required to bring all of that consideration into account under this Part.