Lessors may have leases that are not eligible and so outside
the scope of an election. Where this is the case, the figures in
the accounts would need to be analysed to enable the necessary
apportionments to be made.
In practice, it is unlikely that a lessor in this situation
would gain any benefit from attempting to base its profits on
figures in the accounts, rather than following the strict statutory
basis. However each case should be looked at on its own merits.
The overriding principle is that the lessor should be taxed
on an appropriate amount of profit. How that profit is calculated
is less important than that it is correct.
You should refer cases of doubt or difficulty to CT & VAT
(Technical) for advice.
