Similar principles apply for corporation tax purposes (CAA 2001, s. 259). Allowances are given, and charges made, in calculating the income from special leasing. Once more, there is a restriction where, for the whole or part of the tax year, the plant or machinery in question was not used for the purposes of a qualifying activity carried on by the lessee. In such a case, the allowance, or a proportionate part of it, is to be deducted from the income from the special leasing of that asset only.

These rules also apply to investment assets let by a company for the purpose of its life assurance business (CAA 2001, s. 19(5)).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.