BIM61215 - Leasing: avoidance: assets other than land: definitions

A capital sum is defined in ICTA88/S785 for the purposes of ICTA88/S781 as:

• any sum of money, or money's worth,

except to the extent that it:

• is to be treated as a receipt in computing the profits of a trade, profession or vocation or of woodlands, or
• is, apart from Section 781, chargeable:

Asset and lease are widely defined in ICTA88/S785; the term lease includes a hire-purchase agreement, as to which there are special provisions in ICTA88/S784.

ICTA88/S781 (9) also provides that ICTA88/S781 shall not apply where the capital sum obtained in respect of the hire-purchaser's interest in a hire-purchase agreement for plant or machinery is a sum which is required to be brought into the capital allowances computation (as the whole or part of the disposal of the plant or machinery under CAA01/S68) - see example 3 at BIM61235.