Section 362 | Lessor under long funding finance lease making termination payment

(1)This section applies if—

(a)a company is or has been the lessor under a long funding finance lease,

(b)the lease terminates, and

(c)a sum calculated by reference to the termination value is paid to the lessee.

(2)No deduction in respect of the sum is allowed in calculating the profits of the company for corporation tax purposes.

(3)This section does not prevent a deduction in respect of a sum so far as it is brought into account in determining the company's rental earnings.

(4)For the meaning of “termination value”, see section 381(3)(m).