SCHEDULE 14 Leases: Changes to Accounting Standards etc

Part 1 Finance Leases: Amendments as a Result of Changes to Accounting Standards

Finance Act 2019 (2019 c 1) | Legislation

Section 36 Part 1 Finance Leases: Amendments as a Result of Changes to Accounting Standards

(1) Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

(2) In section 67 (plant or machinery treated as owned by person entitled to benefit of contract, etc), in subsection (2B), for the words from “falls (or would fall)” to the end substitute “—

(a) falls (or would fall) to be treated by that person in accordance with generally accepted accounting practice as a finance lease, or

(b) if that person is a lessee under a right-of-use lease, would fall to be treated in that person's accounts as a finance lease were that person required under generally accepted accounting practice to determine whether the lease falls to be so treated.”

(3) In section 70E (disposal events and disposal values), in subsection (2D)(a), after “finance charges” insert “, or interest expenses,”.

(4) In section 70YA (changes in accountancy classification of long funding leases)—

(a) in subsection (1)(b), for “or an operating lease” substitute “, an operating lease or a right-of-use lease”,

(b) in subsection (4)—

(i) for “or an operating lease”