Finance Leasing Manual - FLM37.12

Part II Schedule 12: second condition: new scheme

A 'new scheme' is defined in Paragraph 27(1) Schedule 12 FA 1997 as the lease of an asset which is not an 'existing scheme'. Paragraphs Paragraph 27(2) to (4) then define an existing scheme. A lease counts as an 'existing scheme' if there is a contract in writing for the lease prior to 26 November 1996 and it further satisfies one or other of two requirements (see FLM37.13 and FLM37.14).