Section 891: Apportionments for leases of plant or machinery and other property
2638.This section ensures that section 890 applies in a just and reasonable manner where the lease includes (but is not limited to) plant or machinery that is not a fixture. It is based on section 785D of ICTA.
2639.Subsection (3) ensures that where the capital payment refers to plant or machinery, any income from which would be charged as profits of a UKproperty business, it is treated as referring to “other property” for the purpose of arriving at an apportionment under subsection (2). For example, if a lease of property includes furniture (and the income in respect of the furniture is taxed as property income) any element of the capital payment that refers to the furniture is outside the scope of section 890.
2640.The words “if the income (if any) ... is chargeable” in section 785D(3) of ICTA have been rewritten as “any income ... would be chargeable” in subsection (3), in order to remove any doubt that this treatment applies whether or not any income actually arises. This conforms the wording of subsection (3) with that of section 785C(4)(a) of ICTA rewritten in section 894(4).
