Finance Leasing Manual - FLM31.22

First condition: companies not incporporated in UK

Most companies not incorporated in the UK, even if resident in the UK for tax purposes, will not normally be required to draw up accounts in accordance with UK accounting standards. Instead they draw up and file with Companies House accounts drawn up in accordance with the standards of the country where they are incorporated. The treatment of a lease in those accounts will be irrelevant to the question whether the lease is regarded as a finance lease for the purposes of Schedule 12.

In such a case, for example where leasing transactions are carried out through the UK branch of a company incorporated abroad, you should consider requesting details of leasing transactions to which Schedule 12 may apply. In any case of doubt or difficulty over the correct accounting treatment under UK standards you should seek assistance locally from Revenue accountants.