Capital Allowances Act 2001 section 105

"Leasing", "overseas leasing" etc

Section 105 defines the key terms used throughout the overseas leasing chapter, including what counts as leasing, overseas leasing, profits chargeable to tax, protected leasing, and qualifying activity.

• Leasing is defined broadly to include chartering ships or aircraft and hiring out any other asset, and covers sub-leases as well as leases
• Plant or machinery counts as used for overseas leasing if the lessee is non-UK resident and does not use the asset exclusively for earning UK-taxable profits, but leases finalised on or after 1 April 2006 are disregarded
• Profits chargeable to tax include UK continental shelf exploration profits but exclude profits where the recipient is entitled to relief under a double taxation agreement
• Protected leasing covers short-term leasing and, for ships, aircraft, or transport containers, use for a qualifying purpose such as chartering to a UK resident