Corporation Tax Act 2010 section 922

Contributors to capital expenditure

Section 922 extends the finance lease rules in sections 918 and 919 so that they also apply to a person who has contributed capital towards the cost of a leased asset and received capital allowances for that contribution.

• This section applies where a leased asset falls within the finance lease rules under section 918 or section 919.
• A person (the "contributor") has received capital allowances under sections 537 to 542 of the Capital Allowances Act 2001 for contributing a capital sum towards the cost of providing the leased asset.
• The same restrictions that sections 918 or 919 impose on the current lessor's capital allowances also apply to the contributor's allowances in respect of that contribution.
• This ensures contributors cannot avoid the finance lease provisions simply because their allowances arise from a contribution rather than from direct ownership expenditure.