Finance Leasing Manual - FLM6.50

Additional tax breaks invented by lessors

The main tax benefits of leasing (timing advantages) have been greatly extended by arrangements which creating further tax breaks. They, and what has been done to counter them, are briefly summarised under the following headings:

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

• acceleration of capital allowances, see FLM6.57

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

• sales and leasebacks, see FLM6.64

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