Finance Leasing Manual - FLM11.64

Non-depreciating assets: fixtures

Under the general law of property, fixtures which are leased normally belong to the lessee and may be kept in use by the lessee after the lease ends. Particular problems of fixtures leasing are discussed at FLM11.74.

Where the lease of a non-depreciating building also includes the fixtures in it and those fixtures are depreciated over the term of the lease in accordance with correct accounting practice, the depreciating and non-depreciating elements may be dealt with separately so that relief can be obtained for the fixtures which depreciate, see FLM11.78.