Section 148G | Lessee under long funding finance lease: limit on deductions ^F1

(1)This section applies for the purpose of calculating the profits of a person carrying on a trade, profession or vocation for a period of account in which the person is the lessee of any plant or machinery under a long funding finance lease.^F1

(2)In calculating the person's profits for the period of account,—^F1

(a)the amount deducted in respect of amounts payable under the lease,^F1

(b)the amounts which, in accordance with generally accepted accounting practice, fall (or would fall) to be shown in the person's accounts as finance charges , or interest expenses, in respect of the lease.^F1F2

must not exceed

(3)If the lease is one which, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, subsection (2) applies as if the lease were one which, under generally accepted accounting practice, fell to be treated as a finance lease.^F1