Taxation (International and Other Provisions) Act 2010 section 371VIA

Relevant finance leases

Section 371VIA defines what counts as a "relevant finance lease" for the purposes of the controlled foreign company rules in Part 9A of the Act.

• A relevant finance lease is an arrangement where an asset is leased or made available to another person and is treated as a finance lease or loan in the lessor's accounts (or those of a connected person) under generally accepted accounting practice — but loan relationships are explicitly excluded from the definition.
• Hire-purchase, conditional sale or similar arrangements that are not caught by the main definition but are of a similar character to finance leases are also included as relevant finance leases.
• Where a person's accounts are not prepared under either international accounting standards or UK GAAP, any question about accounting treatment is determined by reference to international accounting standards.
• The term "accounts" includes consolidated accounts — that is, accounts relating to two or more companies of which the company in question is one.