Rosco Plc leased a locomotive and rolling stock to Broad
Street Railways for 12 years ending on 30 April 2006. By 30 April
2006, the locomotives and rolling stock were in need of updating.
Therefore Broad Street Railways approached Rosco Plc, asking it to
make improvements by replacing the locomotive and introducing
safety equipment. Rosco Plc agreed to fund the improvements. The
locomotive was again leased to Broad Street Railways under a lease
from 1 May 2006. The improvements were paid for by Rosco Plc and
reflected in the rentals.
For the purpose of CAA01/S70J (6) the plant or machinery is
the locomotive and rolling stock, and the lease that commenced on 1
May 2006 is not a funding lease.
