Capital Allowances Act 2001 section 174

Meaning of "equipment lease" and "lease"

Section 174 defines the key terms "equipment lease", "equipment lessor", "equipment lessee" and "lease" as used throughout this Chapter on fixtures.

• An "equipment lease" is either an agreement to lease plant or machinery that has become a fixture, or the actual lease arising from such an agreement, provided the items are not leased as part of the land itself.
• The arrangement arises where someone incurs capital expenditure on plant or machinery for leasing, an agreement is made to lease it (directly or indirectly) to another person, and the plant or machinery becomes a fixture.
• The "equipment lessor" is the person from whom the plant or machinery is leased (directly or indirectly), and the "equipment lessee" is the person to whom it is leased.
• References to a "lease" elsewhere in this Chapter (outside the context of leasing plant or machinery) mean a leasehold estate in land, or an agreement to acquire such an estate.