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).