Finance Leasing Manual - FLM36.18

Catching-up charge: 'existing' operating lease becomes Part I lease

Paragraph 13 Schedule 12 FA 1997 also applies in terms where 'existing' operating leases become Part I leases after 26 November 1996. But in those circumstances there will be no 'catching up' charge under the paragraph nor any cumulative excesses to be brought forward from the periods when the lease was an operating lease.