SolvedSection 70I | “Short lease” F1
From legislation.gov.uk
(1)Construe “short lease” in accordance with this section.F1
(2)A lease whose term is 7 years or less is a short lease.F1F2
(9)Where—F1
(a)a person leases an asset to another (“S”) under a lease that would, apart from this subsection, be a short lease,F1
(b)the inception of that lease is on or after 7th April 2006,F1
(c)at or about the time of the inception of that lease, arrangements are entered into for the asset to be leased to one or more other persons under one or more other leases, andF1
(d)in the aggregate, the term of the lease to S and the terms of the leases to such of those other persons as are connected with S exceed 7 years,F1F4
the lease to S is not a short lease.
(9A)Where plant or machinery is the subject of a lease and finance leaseback (as defined in section 228A)—F1F5
(a)the finance lease mentioned in section 228A(2)(c), andF1F5
(b)any other finance lease forming part of the arrangements for the lease and finance leaseback (except the lease referred to in section 228A(2)(a)),F1F5
is not a short lease (if it otherwise would be).
(10)Where plant or machinery is the subject of a sale and finance leaseback (as defined in section 221), any finance lease of a kind mentioned in section 221(1)(c) is not a short lease (if it otherwise would be).F1F6
(11)But, if the conditions set out in section 227(2) are met, B and S (within the meaning of section 221) may make an election the effect of which is that—F1F6
(a)subsection (10) above does not apply,F1F6
(b)section 228(2) and (3) apply in relation to B (but this does not prevent section 225 from applying), andF1F6
(c)section 228(5) applies in relation to S.F1F6
(12)Subsections (4) to (6) of section 227 apply in relation to elections under this section as they apply in relation to elections under that section.F1F6