Section 148FA Cases where ss. 148A to 148F do not apply: plant or machinery held as trading stockF1F2
Sections 148A to 148F do not apply in the case of a person carrying on a trade who is or has been the lessor of any plant or machinery under a long funding lease if the following condition is met.
The condition is that any part of the expenditure incurred by the person on the acquisition of the plant or machinery for leasing under the lease—
is (apart from those sections) allowable as a deduction in calculating the profits or losses of the trade, and
is so allowable as a result of the plant or machinery forming part of the trading stock of the trade.
For the purposes of this section the cases in which expenditure incurred by a person carrying on a trade on the acquisition of any plant or machinery for leasing under a lease is allowable as such a deduction include any case where—
the person becomes entitled to the deduction at any time after the expenditure is incurred, and
the deduction arises as a result of the plant or machinery forming part of the trading stock of the trade at that time.
If—
at any time any of sections 148A to 148F has applied for determining the amounts to be taken into account in calculating the profits or losses of the trade, and
the condition in subsection (2) is met at any subsequent time,
those amounts, and any other amounts which (as a result of this section) are to be so taken into account, are subject to such adjustments as are just and reasonable.
All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (4).
Annotations
Textual amendments
- F1
Pt. 2 Ch. 10A, (ss 148A-148J) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13
- F2
S. 148FA and cross-heading inserted (with effect in accordance with Sch. 20 para. 10(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 10(2)