Finance Leasing Manual - FLM34.04

Bad debts: Schedule D Case I: Example

The point at FLM34.03 can best be illustrated by an example. Assume the following position for the first two accounting periods relating to a continuing finance lease to which Schedule 12 applies.

Example

In the absence of provisions in Schedule 12 restricting the cumulative accountancy rental excess, the excess available to carry forward at the end of year 2 would be 1000 even though, net of bad debt relief, no rents have been taxed.