Capital Allowances Act 2001 section 70K

Plant or machinery lease

Section 70K defines what constitutes a "plant or machinery lease" for the purposes of the long funding lease provisions, and explains how related terms such as "lease", "lessor" and "lessee" should be interpreted accordingly.

• A plant or machinery lease includes any arrangement granting the right to use plant or machinery for a period, provided it is treated as a lease under generally accepted accounting practice (GAAP).
• An arrangement that GAAP treats as a lease and that conveys the right to use an asset which is plant or machinery also qualifies, even if it is not a straightforward grant of a right to use plant or machinery.
• A finance lease forming part of a sale and finance leaseback of plant or machinery (as defined in section 221) is also a plant or machinery lease.
• Where an arrangement qualifies as a plant or machinery lease immediately after the lease term commences, it is treated as qualifying throughout the earlier pre-commencement period running from the inception of the lease to the start of its term.