This manual provides guidance on the taxation of leasing
transactions, particularly those involving plant or machinery.
In common with many other aspects of taxation the taxation of
many leasing transactions depends wholly or in part on the
accounting treatment.
This manual therefore gives guidance on lease accounting but
it does not attempt to replicate the level of detail that might be
found in accounting textbooks.
The creation of this manual has been prompted, in part, by
the introduction in FA 2006 of rules for identifying and taxing
long funding leases. These rules are complex and this manual may
not yet offer all the necessary guidance. The need for further
guidance may emerge as issues arise in practice. When these issues
are identified the manual will be updated as necessary.
