Corporation Tax Act 2010 section 374

Provision supplementing section 373

Section 374 provides supplementary definitions and interpretive rules that support the anti-avoidance provisions in section 373 relating to long funding leases of plant or machinery.

• The timing of an arrangement caught by the anti-avoidance rule is irrelevant — it can be entered into before, after, or at the start of the long funding lease, and the parties to each transaction within the arrangement need not be the same.
• Two or more transactions are treated as forming part of a single arrangement if it would be reasonable to assume they would not have been entered into independently, or would not have taken the same form or terms if they had been.
• The "lease period" for the purposes of condition B in section 373 runs from the inception of the lease to the end of its term.
• An amount "recognised in determining a company's profit or loss" means an amount recognised for accounting purposes in the profit and loss account, income statement, statement of comprehensive income, statement of total recognised gains and losses, statement of changes in equity, or any other statement used to calculate the company's profits or losses for the period.