BLM20130 -
Defining long funding leases: basic definition: plant or machinery
lease (CAA01/S70K)
The long funding lease rules only apply to leases of plant or
machinery. The rules in CAA01/S70K use accountancy concepts to
define a
plant or machinery lease as
- an agreement or arrangement
-
- under which a lessor grants another person
the right to use the plant or machinery for a period of time,
and
- which is treated under GAAP as a lease (
BLM20140),
- an agreement or arrangement which is
treated under GAAP as a lease and conveys or would convey the right
to use an asset which is plant or machinery (
BLM20145), or
- the finance lease element of a sale and
finance leaseback of plant or machinery (
BLM20155).
