BLM70835 - Schedule 12 FA 1997: back loaded leases: normal rent - trading income


In calculating 'normal rent' which is a trading receipt, a rental should usually be recognised evenly over the rental period to which it relates in accordance with the terms of the lease. See BLM33000 for a further discussion of how the 'capital' or 'loan repayment' element of finance lease rentals are recognised for trading income purposes.