BLM74601 - Schedule 12 FA 1997:
Part II: deferral of tax leases
FA97/Sch12 Part II is directed at finance leases:
- entered into (broadly) on or after 26
November 1996,
- which are not caught by Part I Schedule
12, and
- under which lessors defer tax on
'interest' earnings, such as leases with back-loaded rentals.
Existing leases, which would be within Part II if entered into
on or after 26 November 1996, are protected from Part II as a
transitional measure or, in the jargon, 'grand-fathered'.
