Part 9Leasing plant or machinery

Chapter 2Long funding leases of plant or machinery

Lessees under long funding finance leases

378Lessee under long funding finance lease: termination

1

This section applies if—

a

a company is or has been the lessee under a long funding finance lease, and

b

in connection with the termination of the lease, a payment calculated by reference to the termination value falls to be made to the company.

2

The payment is not to be brought into account in determining the profits of the company for any period of account for corporation tax purposes.

3

Subsection (2) does not affect the amount of any disposal value that falls to be brought into account by the company under CAA 2001.

4

For the meaning of “termination value”, see section 381(3)(m).