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HMRC internal manual

Business Leasing Manual

HM Revenue & Customs
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Sale of lessor companies and similar arrangements: business of leasing plant or machinery: meaning of ‘leased out plant or machinery’ - transactions on or after 23 March 2011

CTA2010 S387

The meaning of ‘leased out plant or machinery’ is set out in section 387(7) CTA2010.

Plant of machinery is leased out plant or machinery if:

  • It is leased out on the relevant day or in the past 12 months by the relevant company or by a qualifying associate
  • The lease is a plant or machinery lease that is not an excluded lease of background plant or machinery

Plant or machinery that is leased out by a qualifying associate is ‘leased out plant or machinery’ only if the lessee is or was someone other than the relevant company.

See BLM80152 for the meaning of ‘qualifying associate’.

See BLM80155 for an example.