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HMRC internal manual

Business Leasing Manual

From
HM Revenue & Customs
Updated
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Sale of lessor companies and similar arrangements: business of leasing plant or machinery: Condition A - the plant or machinery test

Sections 388 to 390 CTA2010

To carry out this test:

First: find the accounting value of all the plant or machinery owned by the company on the relevant day - the day on which the company changes hands. See BLM80120.

Second: where the relevant day is before 23 March 2011 work out what proportion of the plant or machinery is ‘qualifying plant or machinery’. See BLM80153.

Where the relevant day is on or after 23 March 2011 work out what proportion of the plant or machinery is ‘leased out’ plant or machinery. See BLM80150.