Accountancy rental earnings

Allocation of rentals under leases

Bad debts

Capital gains

Deemed disposal and reacquisition of asset

Indexation allowance

Receipt of a capital sum under the lease

Restriction of losses

Rules subject to CTA 2010, Pt. 21

Sale of equipment

Taper relief

Capital payments in respect of a lease

Court ruling for lessees

Finance Act 1997 changes

Conditions of Ch. 2




Income profits as non-trader

Computation of miscellaneous income

Interest relief

Rental income

Income profits as trader

Long funding lease, taxation of the lessor

Accounting profits and taxable profits, difference

Finance lease


Lessee under a lease

Operating lease

Operating lease – additional calculation on termination

Operating lease – periodic deduction

Operating lease example

Plant or machinery as trading stock

Subletting when interest is acquired through a lease

Other provisions

Recognition of profits

Sale and finance lease-back


Separating trades

Trading expenses and interest

Bad debt relief


Interest on borrowed funds

Rebate of rentals