Section 122 | Short-term leasing by buyer, lessee, etc.

(1)Plant or machinery is used for a qualifying purpose at any time when any of the persons listed in subsection (2) uses it for short-term leasing (as defined by section 121).

(2)The persons are—

(a)the person (“X”) who incurred expenditure on the provision of the plant or machinery;

(b)a person who is connected with X;

(c)a person who acquired the plant or machinery from X as a result of a disposal on the occasion of which, or two or more disposals on the occasion of each of which there was a change in the persons carrying on the qualifying activity in relation to which Condition A or B was met.^F1F2

(d)a person to whom the plant or machinery is leased and who is resident in the United Kingdom;

(e)a person to whom the plant or machinery is leased, who is carrying on a qualifying activity in the United Kingdom and who uses the plant or machinery for the short-term leasing in the course of that activity.

(2A)Condition A is that—^F3

(a)at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and^F3

(b)at least one person who carried on the qualifying activity before the change continued to carry it on after the change.^F3

(2B)Condition B is that—^F3

(a)the qualifying activity was carried on in partnership both immediately before and immediately after the change,^F3

(b)a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and^F3

(c)at least one company which carried the activity on before the change continued to carry it on after the change.^F3

(3)Repealed^F4