Capital Allowances Act 2001 section 70YH

Termination value

Section 70YH defines what "termination value" means for plant or machinery leased under a long funding lease, and sets out the various ways in which it may be calculated.

• Termination value is generally the value of the plant or machinery at or around the time the lease ends.
• It can be determined by reference to sale proceeds, insurance or compensation receipts, or an estimate of market value.
• Any method that would reasonably be expected to produce a broadly similar result to a direct termination value calculation is also treated as a calculation by reference to the termination value.
• Any other form of indirect calculation based on the termination value is equally included within the definition.