Corporation Tax Act 2010 section 1129

"Hire-purchase agreement"

Section 1129 defines what constitutes a hire-purchase agreement for the purposes of the Corporation Tax Acts.

• A hire-purchase agreement involves goods being leased to a person in return for regular periodic payments.
• Ownership of the goods must pass to the lessee if the agreement terms are met and a specified trigger event occurs, such as the lessee exercising a purchase option.
• The agreement must not be a conditional sale agreement, where a purchase price is paid in instalments but the seller retains ownership until certain conditions are fulfilled.
• Three conditions (A, B and C) must all be satisfied for an agreement to qualify as a hire-purchase agreement under the Corporation Tax Acts.