Corporation Tax Act 2010 section 390

Relevant plant or machinery value where relevant company lessee under long funding lease etc

Section 390 adjusts the calculation of relevant plant or machinery value under section 388 where the relevant company holds plant or machinery under a long funding lease or a hire purchase type arrangement.

• Where plant or machinery is held under a qualifying lease or hire purchase arrangement, any amount already included for that asset in the section 388 calculation must be removed from the total.
• The ascribed value of that plant or machinery as at the relevant day is then added back to the total instead — or, if the total is otherwise nil, it becomes the relevant plant or machinery value.
• The section applies where, at the start of the relevant day, the relevant company is the lessee under a long funding finance lease or long funding operating lease, or is treated as owner under a hire purchase or similar contract.
• It also applies where the plant or machinery is acquired from an associated company on the relevant day and one of those conditions is met by the end of that day.