Corporation Tax Act 2010 section 870

Overview of Chapter

Section 870 provides an overview of the Chapter dealing with the taxation of capital sums received in connection with leased assets.

• This Chapter applies where payments are made under a lease of an asset and a capital sum is also obtained in respect of an interest in that asset.
• In such circumstances, a corporation tax charge may arise on the capital sum received.
• The amount charged to corporation tax is capped at an amount no greater than the capital sum obtained.
• The key terms used throughout the Chapter — "capital sum" and "lease" — are defined separately in later sections (sections 883 and 884 respectively).