Finance Leasing Manual - FLM33.20
Cumulative accountancy rental excess: example 3
Example 1 in FLM33.12 shows the cumulative accountancy rental
excess brought forward and set off during the first 6 years of a
lease. If in Example 1 the leased asset was sold by the lessor for
£25,000 at the end of period 4 the cumulative accountancy
rental excess ('CARE') of £1400 brought forward at the
beginning of that period is first reduced by the £200 set
against normal rent for the period (see below) and only the balance
of £1200 set off in the capital gains computation.
Example 3
