Finance Leasing Manual - FLM33.23

Disposal of asset 'representing' leased asset

The definition of an asset which 'represents' a leased asset in Paragraph 26 Schedule 12 FA 1997 is drawn in wide terms and is discussed at FLM31.81. One example of the disposal of such an asset would be the sale of all the shares in a lessor company invested wholly or mainly in leased assets to which Schedule 12 applies. Cumulative accountancy rental excess can be deducted from the consideration on such a disposal as it can on a disposal of the leased asset itself.