Corporation Tax Act 2010 section 359

Overview of Chapter

Section 359 provides an overview of the chapter dealing with the corporation tax treatment of companies that are lessors or lessees of plant or machinery under long funding leases, whether those leases are finance leases or operating leases.

• The chapter covers how to calculate taxable profits for both lessors and lessees of plant or machinery under long funding finance leases and long funding operating leases
• The chapter addresses lessors first (covering both finance and operating leases), then lessees (again covering both finance and operating leases)
• Certain exclusions apply where the lessor rules do not operate — for example, where the plant or machinery is held as trading stock or relates to films
• Key terms such as "long funding lease", "long funding finance lease" and "long funding operating lease" take their meaning from the Capital Allowances Act 2001, and the subject matter of the lease must always be plant or machinery