BLM00080 - Introduction: Leasing: Leases with option to buy
This manual is being updated to reflect FRS 102 (2024 amendments). For guidance on the tax treatment of accounts prepared under IFRS 16 or the revised FRS 102, please refer to pages within the BLM50000 chapter.
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Where a lease of plant or machinery contains an option for the lessee to buy the asset CAA01/S67 may apply to treat the asset as belonging to the lessee (rather than to the lessor) for capital allowances purposes.
Further guidance on this topic is at BLM00325.