Section 148FA | Cases where ss. 148A to 148F do not apply: plant or machinery held as trading stock ^F1F2

(1)Sections 148A to 148F do not apply in the case of a person carrying on a trade who is or has been the lessor of any plant or machinery under a long funding lease if the following condition is met.^F1F2

(2)The condition is that any part of the expenditure incurred by the person on the acquisition of the plant or machinery for leasing under the lease—^F1F2

(a)is (apart from those sections) allowable as a deduction in calculating the profits or losses of the trade, and^F1F2

(b)is so allowable as a result of the plant or machinery forming part of the trading stock of the trade.^F1F2

(3)For the purposes of this section the cases in which expenditure incurred by a person carrying on a trade on the acquisition of any plant or machinery for leasing under a lease is allowable as such a deduction include any case where—^F1F2

(a)the person becomes entitled to the deduction at any time after the expenditure is incurred, and^F1F2

(b)the deduction arises as a result of the plant or machinery forming part of the trading stock of the trade at that time.^F1F2

(4)If—^F1F2

(a)at any time any of sections 148A to 148F has applied for determining the amounts to be taken into account in calculating the profits or losses of the trade, and^F1F2

(b)the condition in subsection (2) is met at any subsequent time,^F1F2

those amounts, and any other amounts which (as a result of this section) are to be so taken into account, are subject to such adjustments as are just and reasonable.

(5)All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (4).^F1F2