Finance Leasing Manual - FLM32.28

Where accountancy rental earnings and normal rent are the same

Where for a period of account the normal rent is the same as, or greater than, the accountancy rental earnings, Schedule 12 is silent. In such a case the ordinary computational rules for the head of charge under which the rents from the lease are taxable apply unaffected by Paragraph 5 Schedule 12 FA 1997. Under those rules the normal rent is recognised, not the accountancy rental earnings.