Part 9

Leasing plant or machinery
Chapter 2

Long funding leases of plant or machinery

Cases where sections 360 to 369 do not apply

Plant or machinery held as trading stock
370
1
Sections 360 to 369 do not apply in relation to a long funding lease in the case of a company which is or has been the lessor of any plant or machinery under the lease if the condition in subsection (2) is met.
2
The condition is that any part of the expenditure incurred by the company on the acquisition of the plant or machinery for leasing under the lease—
a
is allowable as a deduction (apart from sections 360 to 369) in calculating its profits or losses for corporation tax purposes, and
b
is so allowable as a result of the plant or machinery forming part of its trading stock.
3
For the purposes of this section the cases in which expenditure incurred by a company on the acquisition of any plant or machinery for leasing under a lease is allowable as such a deduction include any case where—
a
the company becomes entitled to the deduction at any time after the expenditure is incurred, and
b
the deduction arises as a result of the plant or machinery forming part of its trading stock at that time.