Corporation Tax Act 2010 section 388

"Relevant plant or machinery value" for condition A in section 387

Section 388 sets out how to calculate the "relevant plant or machinery value" on any given day for the purposes of condition A in section 387, which determines whether a company carries on a business of leasing plant or machinery.

• The relevant plant or machinery value is the total of the amounts that would appear on the company's balance sheet for plant or machinery at the start of the relevant day, plus any amounts for plant or machinery transferred from an associated company during that day
• Plant or machinery counts as "relevant transferred plant or machinery" if it would have appeared on the balance sheet of an associated company at the start of that same day
• The calculation is subject to modification where the relevant company is a lessee under a long funding lease, as provided for in section 390
• Further supplementary rules for carrying out this calculation are set out in section 389