Income Tax Act 2007 section 614DG

Interpretation

Section 614DG provides the definitions and interpretative rules for the key terms used throughout Part 11A, which deals with leasing arrangements, finance leases and loans.

• It defines core leasing concepts such as "lease", "lessor", "lessee", "leasing arrangements", "asset" and "rent", with broad meanings that cover land and non-land property alike
• It explains accounting-related terms including "accountancy rental earnings", "accountancy rental excess", "normal rent", "normal rental excess", "rental earnings" and their cumulative equivalents, each cross-referring to the relevant computational rules
• It identifies the parties involved — "the current lessor" (whoever currently holds the lessor's interest) and "finance lessor" (the person treated under generally accepted accounting practice as holding the grantor's or lender's interest) — and clarifies that "for accounting purposes" means for the purposes of accounts of UK-incorporated companies or their consolidated group accounts
• It sets out time-related and scheme-related definitions including "period of account", "related period of account", "related tax year", "pre-26 November 1996 scheme" and "post-25 November 1996 scheme", and confirms that "sum" includes money or money's worth