Part 9

Leasing plant or machinery
Chapter 2

Long funding leases of plant or machinery

Lessors under long funding finance leases

Lessor under long funding finance lease making termination payment
362
1
This section applies if—
a
a company is or has been the lessor under a long funding finance lease,
b
the lease terminates, and
c
a sum calculated by reference to the termination value is paid to the lessee.
2
No deduction in respect of the sum is allowed in calculating the profits of the company for corporation tax purposes.
3
This section does not prevent a deduction in respect of a sum so far as it is brought into account in determining the company's rental earnings.
4
For the meaning of “termination value”, see section 381(3)(m).