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HMRC internal manual

Business Leasing Manual

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HM Revenue & Customs
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Defining long funding leases: election: how to make an election (SI2007/304 regulation 2(2))

An election must

  • be made in a return, and
  • specify the date from which it is to take effect BLM24025.

For this purpose a return includes the return as originally made or an amended return.

Note that the election is subject to the time limits in BLM24075.

The rules vary depending on whether the person making the election is within the charge to corporation tax or income tax.

Corporation tax

In the case of corporation tax, the election must be made in the return for the chargeable period in which the effective date falls. An example is at BLM24075.

Income tax

In the case of income tax, the election must be made in the return for the year of assessment (tax year) in which ends the basis period in which the effective date falls. See example at BLM24040.