CAA01/S258 – S261A

There are separate rules for income tax and corporation tax where the qualifying activity is special leasing.

Income tax

Deduct a PMA from any income from special leasing unless the lessee did not use the asset for a qualifying activity for all or part of the current tax year.

If the lessee did not use the asset for a qualifying activity for all or part of the current tax year, deduct the PMA on the asset (or part of it) from the income from special leasing of that asset only.

So in summary PMA on an asset used for special leasing can only be set against other income from special leasing to the extent that the lessee uses the asset for a qualifying activity.

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