Corporation Tax Act 2010 section 917

Effect of capital allowances: introduction

Section 917 introduces the rules in sections 918 to 922, which deal with how capital allowances interact with finance leases where a major lump sum becomes payable in connection with the lease of an asset.

• Sections 917 to 922 apply when a major lump sum falls due in relation to the lease of an asset
• A "major lump sum" is a defined term (see section 902(5)) referring to a substantial one-off payment connected with the lease
• The point at which such a lump sum becomes payable is referred to throughout these sections as "the relevant occasion"
• This section is purely introductory and sets the stage for the detailed rules that follow in sections 918 to 922