Income Tax Act 2007 section 614CA

Purpose of this Chapter

Section 614CA explains the main purpose of this Chapter, which is to ensure that a lessor is charged to income tax on lease income that is no less than the amount recognised under generally accepted accounting practice.

• The Chapter charges the person holding the lessor's interest under a lease to income tax on specified amounts of income
• Taxable amounts are determined by reference to the income return recognised under generally accepted accounting practice on or after 26 November 1996 in respect of the finance lease or loan
• The determination also takes into account the overall substance of the arrangements, including relationships between connected persons or companies within a group
• The relevant substance is assessed by looking at what is reflected, or should be reflected, in individual accounts or consolidated group accounts