Commentary

D7.909 Taxable income—hire of assets

Corporate tax
Corporate tax | Commentary

D7.909 Taxable income—hire of assets

Corporate tax | Commentary

D7.909 Taxable income—hire of assets

From 1 April 2014 where a company that carries on a ring fence trade makes a lease payment for a relevant asset which is to be used in the relevant offshore service there is a restriction on the total deduction that may be brought into account in respect of the lease payments1. The deduction is limited to the hire cap2; the hire cap is calculated as detailed in D7.9403.

This provision mirrors the effect of the restriction where oil contractor activities are carried out, in circumstances where separate contracts have been used (

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