Capital Allowances Act 2001 section 70YI

General definitions

Section 70YI provides a glossary of key terms used throughout the long funding lease provisions, covering definitions relating to leases, assets, valuations and timing.

• Defines core lease terminology including "lease", "lessor", "lessee", "inception", "commencement" and "termination", with specific meanings for plant and machinery and land contexts
• Distinguishes between different lease categories: "long funding lease", "long funding finance lease", "long funding operating lease", "short lease", "funding lease", "right-of-use lease" and "derived lease"
• Defines asset-related terms including "fixture", "building", "market value", "remaining useful economic life" and "background plant or machinery for a building"
• Requires that any apportionments needed under the long funding lease rules must be made on a just and reasonable basis