You may come across cases where the terms of a Part I lease
are varied so as to ensure that the capital sum receivable when the
lessor exits from the leasing arrangements does not contain any
amount which counts as 'return on investment'. This may be achieved
for example by increasing rentals so that rolled up 'interest' or
'negative depreciation' is eliminated before the capital sum falls
due. As a result the capital sum will not be a 'major lump sum' and
FA97/Sch12/Para11 is of no application. You should report these
cases to CT & VAT (Technical).
