Finance Leasing Manual - FLM33.29

Interaction with general CGT rules

Paragraphs 12(3) and (4) Schedule 12 FA 1997 deal with the interaction of the relief provided under the paragraph and relief under the general rules in the capital gains code excluding sums taken into account in computing income (S37 TCGA 1992 - CG 10260).

• Paragraph 12(4) prevents relief from being given under the general rules for sums representing cumulative accountancy rental excess deductible under Paragraph 12(1) on a current or previous disposal.

• Paragraph 12(3) ensures that relief under S37 for any other sums which meet the relevant conditions remains available.