Finance Leasing Manual - FLM37.26

Part II leases: computation of rentals

Paragraph 17 Schedule 12 FA 1997 applies all the computational rules in Part I to leases within Part II with the exception of:

• Paragraph 11 (capital allowances) - see FLM35.01; and

• Paragraph 13 (catching up charge) - see FLM36.16.

The guidance in this manual on the application of the following provisions to Part I leases applies equally to their application to Part II leases:

• Paragraph 5 (charge on 'negative depreciation') - see FLM32.18

• Paragraph 6,7 and 12 (relief for cumulative excesses) - see FLM33.01

• Paragraph 8 -10 (bad debt relief) - see FLM34.01.