Finance Leasing Manual - FLM31.74

Fourth condition: spreading rule: short period of account

The rule that, in calculating the normal rent for the purpose of the fourth condition, rentals are to be spread (see FLM31.68) will be particularly in point when a period of account is short and thus less likely to contain a due date for rent. This will often be true where the period of account straddling 26 November 1996 is regarded as split into two for Schedule 12 purposes so that a period of account is deemed to end on 25 November 1996 and another to begin on 26 November 1966 (Budget Day) itself.