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HMRC internal manual

Business Leasing Manual

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HM Revenue & Customs
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‘Income-into-capital’ schemes and back loaded leases: Definition of a Chapter 2 of Part 21 CTA 2010 lease: Condition A: lease treated as a loan

The treatment of a lease as a finance lease under GAAP is akin to its treatment as a loan. But the lease is not treated as a loan as such.

CTISA (CT&BIT) has not come across many cases where a lessor has shown a finance lease as a loan in its accounts. But in view of the similarity in the two types of accounting presentation the provisions have been drafted to bring in both types.