F1Part 11ALeasing arrangements: finance leases and loans
F2Chapter 3Other finance leases
Pt. 11A Ch. 3 inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 3 para. 4 (with Sch. 9 paras. 1-9, 22)
Current lessor taxed by reference to accountancy rental earnings
614CCCurrent lessor taxed by reference to accountancy rental earnings
1
This section applies if, in the case of any period of account of the current lessor (“L”)—
a
this Chapter applies in relation to the lease, and
b
the accountancy rental earnings in respect of the lease for that period of account exceed the normal rent for that period.
2
For income tax purposes, L is treated as if in that period of account L had been entitled to, and there had arisen to L, rent from the lease of an amount equal to those accountancy rental earnings (instead of the normal rent referred to in subsection (1)(b)).
3
Such rent from the lease of an asset is treated for income tax purposes—
a
as if it had accrued at an even rate throughout so much of the period of account as falls within the period for which the asset is leased, and
b
as if L had become entitled to it as it accrued.
Pt. 11A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 3 para. 2 (with Sch. 9 paras. 1-9, 22)