Corporation Tax Act 2010 section 937

Interpretation of Part

Section 937 provides definitions and interpretative rules for the key terms used throughout Part 21, which deals with leasing arrangements, finance leases, and loans.

• Defines core leasing terminology including "lease", "lessor", "lessee", "rent", and "leasing arrangements", with broad meanings covering land tenancies, underleases, licences, and any agreement for the use of an asset
• Establishes that several key financial measures — such as "accountancy rental excess", "cumulative accountancy rental excess", "normal rental excess", and "cumulative normal rental excess" — have different detailed definitions depending on whether they are being applied under Chapter 2 (finance leases with return in capital form) or Chapter 3 (other finance leases)
• Clarifies that "asset" means any form of property or rights, "finance lessor" is a person treated under generally accepted accounting practice as holding the grantor's interest in a finance lease or the lender's interest in a loan, and "for accounting purposes" refers to UK-incorporated company accounts or consolidated group accounts
• Provides that schemes are classified by reference to the date 26 November 1996, and that terms such as "period of account", "related accounting period", "rental earnings", "normal rent", and "major lump sum" each have specific meanings set out in other sections of Part 21