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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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Plant and Machinery Allowances (PMA): qualifying expenditure: expenditure for long funding lease

CAA01/S34A

Where a long funding lease CA23850 is finalised on or after 1 April 2006 or the term of a long funding lease begins on or after 1 April 2006 the lessee is treated as the owner of the asset CA23820 unless the lease is an excepted lease CA23855.

The lessor’s expenditure on providing an asset for leasing under a long funding lease is not qualifying expenditure if the lessee is treated as the owner of the asset. So it is the lessee rather than the lessor that is entitled to PMA.