Section 25A | Long funding leases of plant or machinery: deemed disposals ^F1

(1)This section applies where plant or machinery is used for the purpose of leasing under a long funding lease.^F1

(2)The lessor shall be deemed for all purposes of this Act—^F1

(a)to have disposed of the plant or machinery at the commencement of the term of the lease at the relevant disposal value, and^F1F2

(b)to have immediately reacquired it at the same value.^F1

(3)The lessor shall also be deemed for all purposes of this Act—^F1

(a)to have disposed of the plant or machinery on the termination of the lease for a consideration equal to the termination amount, and^F1

(b)to have immediately reacquired it for the same consideration.^F1

(4)“Relevant disposal value” means—^F1F3

(a)in relation to a long funding finance lease, the disposal value described in item 5A of the table in section 61(2) of the Capital Allowances Act (disposal values), and^F1F3

(b)in relation to a long funding operating lease, the disposal value described in item 5B of that table.^F1F3

(5)For the purposes of this section, the following expressions have the meaning given in Chapter 6A of Part 2 of the Capital Allowances Act (interpretation of provisions about long funding leases)—^F1F4

“commencement”, in relation to the term of a lease,

“lessor”,

“long funding lease”,

“long funding finance lease”,

“long funding operating lease”,

“the term”, in relation to a lease,

“termination”,

“termination amount”.