Part 9

Leasing plant or machinery
Chapter 2

Long funding leases of plant or machinery

Lessees under long funding finance leases

Lessee under long funding finance lease: termination
378
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).