Finance Leasing Manual - FLM6.28

Timing advantages: further complications

The explanations about the nature of the timing gains for lessors at FLM6.01 onwards ignore some of the complexities in order to illustrate the principles involved. The following paragraphs gives a brief account of some of the complicating factors:

• the 'loan' outstanding will vary because of capital allowances, see FLM6.29

• the position where the lessee is liable to tax, see FLM6.34

• the position where the lessee is not liable to tax, see FLM6.36.