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Legislation
Corporation Tax Act 2010

Crossheading Cases where sections 360 to 369 do not apply

  • Section 370 Plant or machinery held as trading stock
  • Section 371 Adjustments where sections 360 to 369 subsequently disapplied by section 370
  • Section 372 Lessor also lessee under non-long funding lease
  • Section 373 Other avoidance
  • Section 374 Provision supplementing section 373
  • Section 375 Adjustments where sections 360 to 369 subsequently disapplied by section 373
  • Section 376 Films
  1. Cases where sections 360 to 369 do not apply
  2. Plant or machinery held as trading stock

Section 370 | Plant or machinery held as trading stock

From legislation.gov.uk

(1)Sections 360 to 369 do not apply in relation to a long funding lease in the case of a company which is or has been the lessor of any plant or machinery under the lease if the condition in subsection (2) is met.

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

(a)is allowable as a deduction (apart from sections 360 to 369) in calculating its profits or losses for corporation tax purposes, and

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

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

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

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

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