Finance Leasing Manual - FLM33.03

rental excess reliefs: features

The following features are common to the two types of rental excess reliefs ('cumulative accountancy rental excess' and 'cumulative normal rental excess'):

• the reliefs apply in precisely the same way to leases within both Part I and Part II of Schedule 12;

• both apply on a lease by lease basis (but see FLM33.31 for the approach in practice to small leases);

• in neither case is any regard paid to the position for periods ending prior 26 November 1996 (when a new period of account is deemed to begin for the purposes of the schedule);

• neither is dependent on a claim - the reliefs are mandatory;

• on the assignment of the lessor's interest in the leased asset in circumstances treated as no gain/no loss for capital gains purposes, the assignee inherits both types of unused relief (see FLM33.41)