Income Tax Act 2007 section 809ZF

Further interpretation of section 809ZA etc.

Section 809ZF provides key definitions and interpretive rules that apply to the anti-avoidance provisions in sections 809ZA to 809ZE, which deal with capital receipts connected with leases of plant and machinery being treated as income.

• The term "lease" is broadly defined to include licences, chartering of ships or aircraft, and hiring of any other asset, with "lessor" and "lessee" interpreted accordingly.
• A "lease of plant or machinery" can include leases covering plant or machinery together with other property, but excludes leases generating property income taxable under Part 3 of ITTOIA 2005 and leases where the lessor's expenditure is disqualified solely because it relates to long funding leasing under section 34A of CAA 2001.
• A "relevant arrangement" means any agreement or arrangement connected with a plant or machinery lease, including those made before the lease begins or after it has ended.
• The terms "lessor" and "lessee" extend to prospective and former lessors and lessees, reflecting the broad timeframe covered by "relevant arrangement".