Business Leasing Manual

Depreciation of leased assets

Fixtures leases


Lease term significantly shorter than useful life

Non-depreciable assets

Sale and lease-back

Sums paid before assetcomes into use

Termination adjustments

Lease and finance lease-back

Effect of accounting treatment

Effect on lessee's deductions

Effect on the income or profits

Former provisions affecting the lessee


IFRS 16 transition

Relevant transaction

Long funding leases, treatment of lessees


Rental payments

Termination and disposal values

Rental payments, deduction

Sale and finance lease-back

Effect on the lessee's deductions

Former effect of accounting treatment

Former effect of termination on income or profits of the lessee-back

Former restrictions on deductions for the lessee-back

Provisions (transitional)

Statement of Practice SP3/91

Accounting treatment


Fiscal position of lessees

Practical consequences