Finance Leasing Manual - FLM21.11

Old Schedule A: finance leasing arrangements targeted by Schedule 12 FA 1997

In the finance leasing schemes targeted by Schedule 12 FA 1997 the lessor will almost certainly want the strict statutory 'entitlement' basis to be applied because it enables the parties to put the taxable rent in the accounting period of their choice. You should be able to tell when the strict basis is claimed by the taxpayer because the computations will usually have adjustments to the accounts figures. This is because the commercial accounts will use the accruals basis because this is normally appropriate accountancy practice.

For Corporation Tax cases, the old version of Schedule A continues to apply up to 31 March 1998. Guidance on old Schedule A as it applies to Corporation Tax cases can be found in PIM5000 onwards.