Section 148G Lessee under long funding finance lease: limit on deductionsF1

United Kingdom

(1)

This section applies for the purpose of calculating the profits of a person carrying on a trade, profession or vocation for a period of account in which the person is the lessee of any plant or machinery under a long funding finance lease.

(2)

In calculating the person's profits for the period of account,—

(a)

the amount deducted in respect of amounts payable under the lease,

must not exceed

(b)

the amounts which, in accordance with generally accepted accounting practice, fall (or would fall) to be shown in the person's accounts as finance charges F2, or interest expenses, in respect of the lease.

(3)

If the lease is one which, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, subsection (2) applies as if the lease were one which, under generally accepted accounting practice, fell to be treated as a finance lease.

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: Words in s. 148G(2) inserted (with effect in accordance with Sch. 14 para. 6(1) of the amending Act) by Finance Act 2019 (c. 1), Sch. 14 para. 2(2)

Notes on Lessees under long funding finance leases

Textual amendments

F2: Pt. 2 Ch. 10A inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 81, Sch. 8 para. 13