# Income Tax (Trading and Other Income) Act 2005, Section 148J: Interpretation of Chapter 10A


(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—
(a)the estimated market value of the plant or machinery on a disposal at the end of the term of the lease,
less
(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.

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/148J (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-148J
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.