Commentary

B5.409 Lessees under long funding operating leases

Business tax
Business tax | Commentary

B5.409 Lessees under long funding operating leases

Business tax | Commentary

B5.409 Lessees under long funding operating leases

If, in a period of account, a company or person carrying on a trade, profession or vocation is the lessee of any plant or machinery under a long funding lease which is a long funding operating lease (see B5.405), the deductions that may be allowed in computing the person's profits for the period of account are to be reduced as follows, to reflect the fact that capital allowances are due1:

  1.  

    (1)     Determine the 'starting value' (or 'relevant value' for income tax purposes) (see below).

  2.  

    (2)     Deduct from the starting value/relevant value the amount2:

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial