Part 2

Trading income
Chapter 10A

Leases of plant or machinery: special rules for long funding leases

Lessors under long funding finance leases

Lessor under long funding finance lease: exceptional items
148B
1
This section applies for the purpose of calculating the profits of a person carrying on a trade for a period of account if he is or has been the lessor under a long funding finance lease.
2
This section has effect where a profit or loss (whether of an income or capital nature)—
a
arises to the person in connection with the lease, and
b
in accordance with generally accepted accounting practice falls to be recognised for accounting purposes in a period of account, but
c
would not, apart from this section, be brought into account in calculating the profits of the person.
3
The profit or loss is to be treated—
a
in the case of a profit, as income of the person that is attributable to the lease,
b
in the case of a loss, as a revenue expense incurred by the person in connection with the lease.
4
Any reference in this section to an amount falling to be recognised for accounting purposes in a period of account is a reference to an amount falling to be recognised for accounting purposes—
a
in the person's profit and loss account or income statement,
b
in the person's statement of recognised gains and losses or statement of changes in equity, or
c
in any other statement of items brought into account in computing the person's profits or losses for that period.
Pt. 2 Ch. 10A, (ss 148A-148J) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13
Pt. 2 Ch. 10A inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13
S. 148B excluded (21.7.2009) by Finance Act 2009 (c. 10), Sch. 33 para. 7 (with Sch. 33 paras. 4, 9)
S. 148B excluded (21.7.2008) by Finance Act 2008 (c. 9), Sch. 20 para. 11(8)