Income Tax Act 2007 section 614BB

Application of this Chapter

Section 614BB sets out when Chapter 2 (finance leases with a return in capital form) applies to a particular lease, and when it ceases to apply.

• The Chapter applies where an asset has been leased and the conditions in section 614BC have been met at some point during a period of account of the current lessor.
• The Chapter does not apply to long funding leases of plant or machinery where capital allowances are given to the lessee rather than the lessor under Part 2 of the Capital Allowances Act 2001.
• Once the section 614BC conditions have been met, they are treated as continuing to be met for any subsequent lessor, unless the asset ceases to be leased or the lessor's interest is assigned to a person who is wholly unconnected with any current, former or arranged future lessor.
• If a previous lessor was within the charge to corporation tax, the equivalent conditions under section 902 of CTA 2010 count as meeting the section 614BC conditions for the purposes of this Chapter.