Corporation Tax Act 2010 section 866

Long funding finance leases

Section 866 provides an exception from the commercial rent restriction in section 865 for payments made under long funding finance leases.

• This section modifies how the commercial rent cap in section 865 applies to certain lease payments.
• Payments under long funding finance leases are excluded from the section 865 restriction on tax deductions.
• A long funding finance lease is one treated as such under the capital allowances rules in Chapter 6A of Part 2 of the Capital Allowances Act 2001.
• The exclusion applies from the lessee's perspective, so that these lease payments are dealt with under the capital allowances regime instead.