The basic conditions of entitlement to writing-down capital allowances for a lessor under a lease other than a long funding lease may be summarised as follows:

The lessor must be carrying on a qualifying activity that consists of or includes the leasing activity. In the case of leasing, a qualifying activity will be either (a) a trade or (b) ‘special leasing’ of plant or machinery (CAA 2001, s. 15).

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