Finance Leasing Manual - FLM43.11

Lessee disappears with leased assets

If the lessee disappears along with the leased goods full relief will be given for costs under the Capital Allowances code; and any actual costs that are revenue in nature will be allowed as a Schedule D Case I deduction. So, ignoring other payments, in the example at FLM43.04 relief of £50,000 is given by way of Capital Allowances. This equals the loss suffered.