BLM74330 | ’Income-into-capital’ schemes and back loaded leases: Lease changes: finance lease within Chapter 3 of Part 21 of CTA 2010 becomes an operating lease

Where a lease to which Chapter 3 of Part 21 of CTA 2010 applies ceases to be classified as a finance lease and becomes an operating lease it technically remains within Chapter 3 but there will henceforth be no accountancy rental earnings. Therefore cumulative accountancy rental excess brought forward may be set off up to the whole of the taxable (‘normal’) rent.