BLM30215 - Taxation of leases that are not long funding leases: How tax advantages arise: timing differences – lender, a worked example – part 3 of 4

By contrast to the tax consequences for the finance lessor (see BLM30210), where an actual loan is made the lender's tax computation will look something like this on similar assumptions:

In both cases

• the timing of receipts and payments is identical
• the same amount of tax is due from both the lessor and the lender (£7 in each case)

but the tax timing is quite different.