BLM74305 | ’Income-into-capital’ schemes and back loaded leases: Lease changes: effect of other changes in leasing arrangements

The effect of other changes in leasing arrangements and/or in their accountancy treatment are described under the following headings:

• changes affecting a lease within Chapter 2 of Part 21 of CTA 2010- see BLM74310,

• ‘new’ operating lease becomes a finance lease - see BLM74315,

• ‘new’ Chapter 3 of Part 21 of CTA 2010 lease,

• existing operating lease becomes a Chapter 3 lease - see BLM74325, and

• Chapter 3 finance lease becomes an operating lease - see BLM74330.

• In this Section:

• a ‘post 25 November 1996’ lease is one which forms part of a ‘post-25 November 1996 scheme’ within the meaning of CTA10/S930 (normally a lease granted on or after 26 November 1996); and

• a ‘pre-26 November 1996’ lease is one which forms part of a ‘pre-26 November 1996 scheme’ under CTA10/S930.

See BLM74325 for a detailed discussion of the distinction.