Commentary

B3.340S Finance leasebacks—plant or machinery subject to further operating lease

Business tax
Business tax | Commentary

B3.340S Finance leasebacks—plant or machinery subject to further operating lease

Business tax | Commentary

B3.340S Finance leasebacks—plant or machinery subject to further operating lease

Plant or machinery which is the subject of a sale and finance leaseback or a lease and finance leaseback may become the subject of a sublease. Special rules apply for computing income tax or corporation tax where1:

  1.  

    •     S, or a person connected with S, is the lessee under the sublease

  2.  

    •     the lessee under the sub-lease does not account for the sublease as a finance lease

A lease is accounted for as a finance lease if it falls under GAAP to be treated as a finance lease or, if under

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