Corporation Tax Act 2010 section 898

Rental earnings

Section 898 defines the term "rental earnings" as used in the context of finance leases and loans for corporation tax purposes.

• Rental earnings represent the income derived from the lease of an asset over a given period, whether for an individual entity or consolidated group accounts.
• The amount is determined in accordance with generally accepted accounting practice (GAAP) as the gross return on investment in respect of a finance lease or loan.
• The gross return relates specifically to the leasing arrangements in question and is measured period by period.
• The meaning of "for accounting purposes" is further explained in section 937 of the same Act.