BLM70000 - Schedule 12 FA 1997: contents

BLM70005Introduction to backloaded leases
BLM70200Introduction to ‘income-into-capital’ schemes
BLM70400Definition of a Part I lease
BLM70800Back loaded leases
BLM71000Income into capital’ schemes
BLM72000Relief for set-offs against rentals
BLM73000Capital allowances
BLM74000Bad debts
BLM74300Lease changes
BLM74600Part II


FA97/Schedule 12 was introduced to counter two categories of tax avoidance using leasing:

  • Back end loaded leases, and
  • Income into capital schemes.

The legislation remains current and has had a number of modifications since introduction. Much of the following guidance was in the Finance Leasing Manual. In that form the guidance was issued after extensive consultation with representative bodies. The guidance that follows is based on the original material updated for legislative changes and amended for clarification.