Finance Leasing Manual - FLM33.28

Simultaneous disposals

Paragraph 12(6) Schedule 12 FA 1997 provides a rule for allocating deductions for cumulative accountancy rental excess where, exceptionally, disposals qualifying for relief under Paragraph 12(1) occur simultaneously (for example a disposal of the asset itself and a disposal of the shares in the lessor company). The rule is that the cumulative accountancy rental excess should be apportioned on a just and reasonable basis.