Finance Leasing Manual - FLM3.08

Other tax advantages of finance leasing

Finance lessors have created further tax advantages which were never intended. These are illustrated by the schemes against which the legislation in FA 1997 and F(No 2)A 1997 is targeted. For example:

• deferral of income or conversion of income into capital, see FLM6.52 onwards

• acceleration of capital allowances, see FLM6.57 onwards

• acceleration of capital allowances through group relief, see FLM6.62 onwards

• sales and leasebacks, see FLM6.64 onwards

• sales and leasebacks where risk has been reduced, see FLM6.68 onwards.