Capital Allowances Act 2001 section 121

Meaning of "short-term leasing"

Section 121 defines what counts as "short-term leasing" of plant or machinery for the purposes of capital allowances.

• Plant or machinery is short-term leased if it is leased to the same person for fewer than 30 consecutive days and fewer than 90 days in total in any 12-month period
• It also qualifies as short-term leasing if leased to the same person for no more than 365 consecutive days, and total leasing to third parties does not exceed 2 years in any 4-year period within the designated period
• Where items form part of a group of the same or similar description and are not separately identifiable, the whole group can be treated as short-term leased if substantially all the items are used that way
• Connected persons are treated as the same person when applying these tests