Section 148J | Interpretation of Chapter 10A

(1)This section has effect for the interpretation of this Chapter.

(2)In this Chapter—

“qualifying activity” has the same meaning as in Part 2 of CAA 2001;

“residual value”, in relation to any plant or machinery leased under a long funding operating lease, means—less

(a)the estimated market value of the plant or machinery on a disposal at the end of the term of the lease,

(b)the estimated costs of that disposal.

(3)Any reference in this Chapter to a sum being written off on a straight line basis over a period of time (the “writing-off period”) is a reference to—

(a)the sum being apportioned between each of the periods of account in which any part of the writing-off period falls,

(b)that apportionment being made on a time basis, according to the proportion of the writing-off period that falls in each of the periods of account, and

(c)the sum being written off accordingly.

(4)Chapter 6A of Part 2 of CAA 2001 (interpretation of that Part so far as relating to long funding leases) also applies for the purposes of this Chapter.