Corporation Tax Act 2010 section 868

Lease

Section 868 defines what constitutes a "lease" for the purposes of the chapter dealing with sales of lessored assets etc.

• A lease is any agreement or arrangement under which payments are made for the use of, or otherwise in respect of, an asset.
• The definition is deliberately broad, covering not only traditional rental arrangements but also hire purchase and similar structures.
• Agreements where payments represent instalments of a purchase price, or payments towards a purchase price, are specifically included within the definition of a lease.
• This wide definition ensures that arrangements designed to achieve similar economic effects to a conventional lease cannot fall outside the scope of the chapter simply by being structured differently.