BLM80110 - Sale of lessor companies and similar arrangements: business of leasing plant or machinery: meaning of carrying on a business of leasing plant or machinery - transactions on or after 23 March 2011
CTA2010 Sections 387 to 391
This guidance covers transactions where the relevant day (the day on which the company 바카라 사이트˜changes hands바카라 사이트™) is on or after 23 March 2011. For transaction before 23 March see BLM80112.
In most instances it will be obvious when a company is carrying on a business of leasing plant or machinery because that is all the company does. But to give certainty the legislation sets out two conditions. The company must satisfy one of these conditions in order to be carrying on a business of leasing plant or machinery:
Condition A: At least half of the company바카라 사이트™s plant or machinery must be 바카라 사이트˜leased out plant or machinery바카라 사이트™. See BLM80115.
Condition B: At least half of the company바카라 사이트™s income in a specified period must be derived from leasing. See BLM80160.
The conditions are tested on the relevant day. The relevant day is the day on which the company changes hands (that is, where there is a qualifying change of ownership). See also the anti-avoidance rules described at BLM82030 onwards.