BLM74305 - Schedule 12 FA 1997: lease changes: effect of other changes in leasing arrangements

The effect of other changes in leasing arrangements and/or in their accountancy treatment are described under the following headings:

• changes affecting a Part I lease - see BLM74310,
• 'new' operating lease becomes a finance lease - see BLM74315,
• 'new' Part II lease,
• existing operating lease becomes a Part II lease - see BLM74325, and
• Part II finance lease becomes an operating lease - see BLM74330.
• In this Section:
• • a 'new' lease is one which forms part of a 'new scheme' within the meaning of FA97/Sch12/Para27 (normally a lease granted on or after 26 November 1996); and
  • an 'existing' lease is one which forms part of an 'existing scheme' under paragraph 27.

See BLM74325 for a detailed discussion of the distinction.