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Section 148J Interpretation of Chapter 10AF1

(1)

This section has effect for the interpretation of this Chapter.

(2)

In this Chapter—

  • “qualifying activity” has the same meaning as in Part 2 of CAA 2001;

  • “residual value”, in relation to any plant or machinery leased under a long funding operating lease, means—

    1. (a)

      the estimated market value of the plant or machinery on a disposal at the end of the term of the lease,

    less

    1. (b)

      the estimated costs of that disposal.

(3)

Any reference in this Chapter to a sum being written off on a straight line basis over a period of time (the “writing-off period”) is a reference to—

(a)

the sum being apportioned between each of the periods of account in which any part of the writing-off period falls,

(b)

that apportionment being made on a time basis, according to the proportion of the writing-off period that falls in each of the periods of account, and

(c)

the sum being written off accordingly.

(4)

Chapter 6A of Part 2 of CAA 2001 (interpretation of that Part so far as relating to long funding leases) also applies for the purposes of this Chapter.

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

Notes on Interpretation of this Chapter

Textual amendments

F2

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