Corporation Tax Act 2010 section 872

Payment under lease

Section 872 sets out one of the conditions (Condition A) that must be met for the sale and lease-back rules in this chapter to apply, requiring that a tax-deductible payment is made under a lease of a relevant asset.

• Condition A requires a payment under a lease of a relevant asset for which a tax deduction is allowed
• Condition A is not met if the leased trading assets rules (section 865) already apply to the payment, or would apply but for the long funding finance lease exclusion (section 866)
• Condition A is also not met if the equivalent income tax provisions (section 681CC of ITA 2007) apply or would apply but for the long funding finance lease exclusion under that Act
• Leases created on or before 14 April 1964 are excluded entirely from the scope of this provision