Finance Leasing Manual - FLM12.15

Structure of the lease: significance for tax purposes

The significance of the rental structure for tax purposes is that the tax treatment is likely to follow the timing of recognition of the rental payments in the accounts (see FLM11.02 onwards). In the absence of a secondary lease period the rentals might all be written off over the primary lease period (SSAP21 paragraph 36 - see FLM10.05).