Section 219 | Meaning of “finance lease” ^F1

(1)In this Chapter “finance lease” means any arrangements—

(a)which provide for plant or machinery to be leased or otherwise made available by a person (“the lessor”) to another person (“the lessee”), and

(b)which, under generally accepted accounting practice—^F2

(i)fall (or would fall) to be treated, in the accounts of the lessor or a person connected with the lessor, as a finance lease or a loan, or

(ii)are comprised in arrangements which fall (or would fall) to be so treated.

(2)Repealed^F3

(3)In this section “accounts”, in relation to a company, includes any accounts which—

(a)relate to two or more companies of which that company is one, and

(b)are drawn up in accordance with generally accepted accounting practice.^F4