Finance Leasing Manual - FLM36.02

Lease changes: effect of other changes in leasing arrangements

The effect of other changes in leasing arrangements and/or in their accountancy treatment are described under the following headings:

• changes affecting a Part I lease - see FLM36.05

• 'new' operating lease becomes a finance lease - see FLM36.07

• 'new' Part II lease

• existing operating lease becomes a Part II lease - see FLM36.12

• Part II finance lease becomes an operating lease - see FLM36.14

In this Section

• a 'new' lease is used to mean one which forms part of a 'new scheme' within the meaning of Paragraph 27 Schedule 12 FA 1997 (normally a lease granted on or after November 26 1996)

• an 'existing' lease is used to mean one which forms part of an 'existing scheme' under Paragraph 27.

See FLM37.12 for a detailed discussion of the distinction.