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

Provisions

Purpose

Generally

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

Generally

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

Generally

Rules application

Transitional commencement provisions

Separating trades

Trading expenses and interest

Bad debt relief

Generally

Interest on borrowed funds

Rebate of rentals