Part 9Leasing plant or machinery

Chapter 3Sales of lessors: leasing business carried on by a company alone

The amount of the income

399The amount of the income: the basic amount

1

This section determines the amount of the income under section 383 when a qualifying change of ownership in relation to a company carrying on a business of leasing plant or machinery occurs on any day.

2

The amount of the income is found by—

a

applying the formula in subsection (3) to give the basic amount, and

b

making any adjustment in accordance with any of sections 404 to 406 to the basic amount.

3

The formula is—

PM−TWDVmath

4

For this purpose—

  • “PM” has the meaning given by sections 400 to 402, and

  • “TWDV” has the meaning given by section 403.

5

In those sections references to the relevant company and the relevant day are to the company and the day mentioned in subsection (1).