BIM61001 - Leasing: General: coverage

This section deals with the accountancy and tax treatment under Cases I and II of Schedule D of certain leasing arrangements, namely:

• operating leases.
• finance leases.

Further guidance on the tax treatment of finance leases is at BIM61100 onwards.

Guidance on:

• the distinction between a finance lease and a hire purchase agreement is at BIM61025.
• the accountancy and tax treatment of hire purchase agreements is at BIM40550 (receipts) and BIM45350 (deductions).