Corporation Tax Act 2010 section 925

Introduction to Chapter

Section 925 introduces the Chapter and defines the scope of leasing arrangements it covers.

• This Chapter applies to arrangements involving the lease of an asset that are treated as a finance lease or loan under generally accepted accounting practice.
• However, the Chapter does not apply to arrangements that fall within Chapter 2.
• It does not matter whether the arrangements are entered into by companies or by other persons such as individuals.
• The Chapter therefore captures a broad range of lease arrangements that have the economic substance of financing transactions, regardless of who the parties are.