Finance Leasing Manual - FLM36.31

Catching-up charge: consequences

The amount of the catching up charge represents cumulative accountancy rental excess to be carried forward from the deemed period of account in which the charge under Paragraph 13 Schedule 12 FA 1997 crystallises. That excess is treated in the same way as ordinary cumulative accountancy rental excesses arising for the (deemed) period of accounting beginning immediately after the period of the charge and subsequently.