Finance Leasing Manual - FLM21.01

Basis on which lessors' income is taxed

The timing of recognition of a lessor's rental income depends on whether:

• Schedule 12 FA 1997 applies to the lease in question - Schedule 12 FA 1997 overrides the normal Schedule A and Schedule D rules to provide a new basis on which to measure rental earnings for leases within its scope, see FLM27.01 onwards

• for Schedule A income, whether 'new' Schedule A or 'old' Schedule A applies, see FLM21.03 onwards.