Section 372 | Lessor also lessee under non-long funding lease

(1)This section applies if—

(a)a company is the lessee of any plant or machinery under a lease (“lease A”),

(b)lease A is not a long funding lease,

(c)the company enters into a lease (“lease B”) of any of that plant or machinery (as lessor), and

(d)lease B is a long funding lease.

(2)Sections 360 to 369 do not apply in relation to lease B.

(3)This section must be treated as never having applied in relation to lease B if lease A—

(a)becomes a long funding lease as a result of section 70H of CAA 2001 (tax return by lessee treating lease as long funding lease), and

(b)has not ceased to be such a lease.