Finance Leasing Manual - FLM2.27

Operating lessee: accountancy treatment

Paragraph 37 of SSAP 21 says:

'The rental under an operating lease should be charged on a straight-line basis over the lease term, even if the payments are not made on such a basis, unless another systematic and rational basis is more appropriate. '

If you find out that bases other than straight-line are in use, please let Business Tax Division (Leasing) know.