»Ê¹ÚÌåÓýapp

S681DC(6)(7), S681DM-S681DO Income Tax Act 2007 (ITA 2010), S873(6)(7), S883-S885 Corporation Tax Act 2010 (CTA 2010)

A capital sum is defined as any sum of money, or money’s worth, except to the extent that it:

• is to be treated as a receipt in computing the profits of a trade, profession or vocation, or
• is, apart from the capital sums legislation, chargeable to Income Tax or Corporation Tax as miscellaneous income.

Asset and lease are widely defined; the term lease includes a hire-purchase agreement, as to which there are special provisions in S681DE ITA 2007 and S875 CTA 2010.

»Ê¹ÚÌåÓýapp legislation does not apply where the capital sum obtained in respect of the hire-purchaser’s interest in a hire-purchase agreement for plant or machinery is a sum which is required to be brought into the capital allowances computation (as the whole or part of the disposal value of the plant or machinery - see example 3 at BIM61235).