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HMRC internal manual

Business Leasing Manual

Defining long funding leases: introduction list of legislation in CTA2010, ITTOIA 2005 and ICTA1988

  CTA 2010 ITTOIA 2005 ICTA 1988
LFFL: Lessor : rental earnings S360 S148A S502B
LFFL: lessor: exceptional items S361 S148B S502C
LFFL: Lessor: termination payment S362 S148C S502D
LFOL: Lessor: periodic deduction S363 S148D S502E
“Starting value”: general S364 S148DA -
“Starting value”: p&m originally unqualifying S365 S148DB -
LFOL: Lessor: additional expenditure by SS366-368 S148E S502F
LFOL: Lessor: termination of lease S369 S148F S502G
P&M held as trading stock SS370-371 S148FA S502GA
Lessor also lessee under non-LFL S372 S148FB S502GB
Other Avoidance SS373-375 S148FC S502GC
Films S376 S148FD S502GD
Insurance company as lessor - - S502H
LFFL: Lessee: limit on deduction S377 S148G S502I
LFFL: Lessee: termination S378 S148H S502J
LFOL: Lessee SS379-380 S148I S502K
Interpretation S381 S148J S502L


  1. Section 502H ICTA 1988 (Insurance company as lessor) repealed from 1 April 2008.
  2. LFFL = Long Funding Finance Lease
  3. LFOL = Long Funding Operating Lease
  4. LFL = Long Finding Lease