Where an 'existing' operating lease becomes a finance lease
Schedule 12 does not apply unless the lease also falls within Part
I Schedule 12 (in which case, see
BLM74335). Part II Schedule 12 does not
apply to leases which count as 'existing schemes' even if the terms
are changed after 26 November 1996.
You should report any case, where an attempt is made to
exploit the protection from Part II Schedule 12 afforded to
'existing' leases by changing the terms of an operating lease to
make it a finance lease with a back-loaded rental profile, to CT
& VAT (Technical).
