Profits or losses that accrue to the lessor when the lease is
terminated and the asset is sold are taxed or relieved when they
arise (ICTA88/S502G and ITTOIA05/S148F,
BLM41035). The same applies to insurance
proceeds, compensation and similar sums.
If a lessor wishes to follow the figures in the accounts it
will need to demonstrate that its accounting policy delivers
essentially the same figure for annual taxable profit that would be
delivered following the strict statutory basis.
