Updates: Business Leasing Manual
2025
New page, further amended to remove link to page which will be archived in February 2026
Lease accounting: leasebacks and sub-leases: contents
Changes to contents pages to remove links to pages where content has been relocated and the pages will be archived in February 2026.
This page will be archived in February 2026, as the contents has been transferred to BLM15025.
Lease accounting: finance lease accounting: finance lessees: contents
Changes to contents pages to remove links to pages where the content has been relocated and which will be archived in February 2026
Lease accounting: accounting standards: introduction and relevant standards
Page updated for current accounting standards.
Content from BLM10020 added
Lease accounting: lease classification: introduction to detail
Content updated for current accounting standards.
Content from BLM00035 inserted.
Lease accounting: lease classification: the term of a lease
Page updated for current accounting standards
Paragraph on 'the definition' deleted
New paragraph for definition of an FRS 102 (2024 amendments) lease term definition
Lease accounting: lease classification: 'fair value'
Page updated for current accountancy.
Line to confirm FRS 102 (2024 amendments) and IFRS 16 use the same definition for the lessor accounting model
Lease accounting: lease classification: residual values and guarantees
Page updated for current accounting standards
Updated definition of residual value for FRS 102 (2024 amendments)
Updated definition of residual value guarantees for FRS 102 (2024 amendments)
Lease accounting: lease classification: inception and commencement
Page updated for current accounting standards
Paragraphs added to confirm timing and amounts to be recognised on inception and commencement for FRS 102 (2024 amendments)
Lease accounting: lease classification: defining finance leases
Page updated for current accounting standards
Lease accounting: lease classification: meaning of 'present value'
Page updated for current accountancy
Lease accounting: lease classification: defining operating leases
Page updated for current accounting standards
Lease accounting: lease classification: independent approach
Page updated for current accounting standards
Lease accounting: lease classification: practical issues with borderline issues
Added content:
Facts to establish types of lease
Timing of rents
Why the finance lease definition is important for tax
Reasons for divergence between lessor and lessee, and contacting the other case owner
Other indicators of a finance lease
Lease accounting: operating lease accounting: introduction
Page updated for current accounting standards
Lease accounting: operating lease accounting: operating lease incentives
Page updated for current accounting standards and covid-19 rent concessions
Lease accounting: finance lease accounting: outline
Updated for accountancy changes
Detail added for background to subject
Lease accounting: finance lease accounting: finance lessors: Net investment in lease
Page updated for current accounting standards
Lease accounting: finance lease accounting: finance lessors: finance income
Page updated for current accounting standards. Material inserted from BLM14040 and BLM14045.
Lease accounting: finance lease accounting: finance lessees: balance sheet
Content updated for current accounting standards. Content inserted from BLM15015 and BLM15020.
Lease accounting: finance lease accounting: finance lessees: profit and loss account
Page updated for current accounting standards. Content inserted from BLM15030.
Lease accounting: finance lease accounting: finance lessees: example 1: lease terminated early
Banner messages added
Reference to LIBOR removed
Entries in lessor's accounts moved from BLM15545
Total cash outlaid moved from BLM15550
Lease accounting: finance lease accounting: finance lessees: example 2: back-loaded rental structure
Added banner messages
Apportioning the rentals - content from BLM15610
Finance charge line added from BLM15615
The Accounting entries - content from BLM15620
Links updated for movements in BLM
Grammar improvements
Lease accounting: leasebacks and sub-leases: introduction to sales and leasebacks under FRS 102
Banner messages added
1st and 3rd para deleted.
Updated for current accounting standards
Content added from BLM16010
Lease accounting: leasebacks and sub-leases: lease and leaseback, subleases and back-to-back leases
Page title updated
Banner messages added
Link to BLM35000 corrected
First paragraph deleted
Updates for current accounting standards
Subleases and Back to Back leases moved from BLM16035
Lease accounting: leasebacks and sub-leases: sub-leases
Material on intermediate party - IFRS - updated for current accounting standards and moved to BLM17060.
Headings updated to remove distinctions between UK GAAP and IFRS
Change to title to reflect current accounting standards
Addition of dates new and revised standards are relevant from
General update for new accounting standards
Removal of paragraph relating to operating leases
Lease accounting under IFRS 16 and FRS 102 (2024 amendments): scope and exemptions
Change to title to reflect current accounting standards
General update for new accounting standards
More clarification on IFRS15
Addition of FRS 102 (2024 amendments) exception for loss on non-typical contracts and examples of assets not of low value
Lease accounting under IFRS 16 and FRS 102 (2024 amendments): identifying a lease
Change to title to reflect current accounting standards
General update for current accounting standards
Lease accounting under IFRS and FRS 102 (2024 amendments): lessor accounting
Change to title to reflect current accounting standards
General update for current accounting standards
New links to BLM12000 and BLM14000
Change to title to reflect current accounting standards
General update for current accounting standards
Update right of use to right-of-use
Change to title to reflect current accounting standards
General update for current accounting standards
Additional disclosures for FRS 102 (2024 amendments)
Lease accounting under IFRS 16 and FRS 102 (2024 amendments): sale and leaseback
Change to title to reflect current accounting standards
General update for current accounting standards
Link to BIM31115 ref IFRS 15 and FRS 102 section 23 added
Link to general tax guidance on sale and leaseback at BLM35000 added
Lease accounting under IFRS 16 and FRS 102 (2024 amendments): transition
Change to title to reflect current accounting standards
General update for current accounting standards
Addition of detail for transition to FRS 102 (2024 amendments)
Lease accounting under IFRS 16 and FRS 102 (2024 amendments): lessee example
Change to title to reflect current accounting standards
General update for current accounting standards
Content moved in from BLM18005 and BLM18010
Table format updated to current requirements
Updated links to BLM12000 and BLM13000
ROU expanded
Introduction: lease taxation: outline
Updated, and amalgamated with content from BLM00310 and BLM00315.
Lease accounting: finance lease accounting: finance lessees: example 1: basic rental structure
Content inserted from:
BLM15510 - is this a finance lease,
BLM15515 - apportioning the rentals,
BLM15520 - allocating the interest element and the finance element,
BLM15525 - allocation of rentals,
BLM15530 - value of assets and liabilities
New page
Lease accounting: accounting standards: contents
New Pages BLM10011 - Commercial Benefits of Leasing and BLM10012 - Accounting Definition of a Lease added
Lease accounting: Lease classification: contents
New pages added: BLM11201 - Finance leases - commercial substance & risks and rewards and BLM11216 - Operating leases & off-balance sheet finance
Lease accounting: accounting standards: FLA SORP
Archive warning message for 6 months has now expired. Page can now be archived.
IFRS 16 Leases: IFRS 16 Lessees: Early Adopters
Content moved to BLM51045. Archive message for 6 months has now expired.
Page to be archived
Page to be archived
Page to be archived
Page to be archived
Page to be archived
Page to be archived
Page to be archived
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Defining long funding leases: commencement and transition: pre-existing heads of agreement: outline
Page to be archived
Defining long funding leases: commencement and transition: pre-existing heads of agreement: contents
Page to be archived
Page to be archived
LFLs: commencement and transition: excepted leases: extended time limits: FA06/Sch8/Para 18
Page to be archived
LFLs: commencement and transition: excepted leases: FA06/Sch8/Para 17
Page to be archived
LFLs: commencement and transition: coming within the charge to tax on or after 1 April 2006
Page to be archived
LFLs: commencement and transition: transitional rules: FA06/Sch8/Para15
Page to be archived
LFLs: commencement and transition: basic rules: FA06/Sch8/Para15
Page to be archived
LFLs: commencement and transition: introduction
Page to be archived
Defining long funding leases: commencement and transition: contents
Page to be archived
Manual wide banner message added to reflect FRS 102 (2024 amendments) and on the tax treatment of accounts prepared under IFRS 16.
Update content for revision to FRS102
Introduction: Leasing: Importance of leasing
Updated with revised data from the FLA
IFRS 16 Leases: IFRS 16 Lessees: Early Adopters
Banner message to advise of archiving in June 2025.
Lease accounting: accounting standards: FLA SORP
Notification that page with be archived in June 2025
Update index for FRS102 (2024)
Right-of-use leases: taxation of right-of-use assets
Update index for FRS102 (2024)
right of use leases: right of use lessees: the spreading rules
Update index for FRS102 (2024)
2024
Updated for changes to FRS 102 (2024 amendments)
Updated for changes to FRS 102 (2024 amendments)
Right-of use assets: commercial and tax impact of right-of-use assets
Updated for FRS102 (2024 amendments)
Updated for changes to FRS 102 (2024 amendments)
Updated for changes to FRS 102 (2024 amendments)
Updated for changes to FRS 102 (2024 amendments)
Right-of-use assets: taxation of right-of-use asset lessees: taxation of short leases
Updated for FRS102 (2024 amendments)
Right-of-use assets: right-of-use asset lessees: example 4 – IFRS 16 early adoptors
Updated to clarify that this example applies to IFRS16 early adopters only.
Right-of-use assets: right-of-use asset lessees: future periods
Updated for FRS 102 (2024 amendments)
Right-of-use assets: right-of-use asset lessees: the spreading rules: the basic calculation
Updated for changes to FRS 102 (2024 amendments)
Right-of-use assets: right-of-use asset lessees: the spreading rules
Updated for FRS 102 (2024 amendments)
IFRS 16 Leases: IFRS 16 Lessees: Early Adopters
Contents of this page have been updated for FRS 102 (2024 amendments) and consolidated in page BLM50145. This page will be deleted.
Update index title for FRS 102 (2024 amendments)
Right-of-use assets: introduction to taxation of right-of-use asset lessees
Updated for FRS 102 (2024 amendments)
Business Leasing Manual: changes 27 January 2015
Archive - old information which it it's own right, is no longer relevant.
Business Leasing Manual: 20 April 2009 changes
Archive - Change record no longer relevant due to age.
Business Leasing Manual: 15 May 2013 changes
Archive - old information which it it's own right, is no longer relevant.
Business Leasing Manual: 18 June 2013 changes
Archive - old information which it it's own right, is no longer relevant.
Business Leasing Manual: 4 March 2013 changes
Archive - old information which it it's own right, is no longer relevant.
2022
Update index for FRS102 (2024)
2021
Lease accounting: finance lease accounting: finance lessors: accounting example
Table header updated
Updated table headers.
Republish table headers.
2020
IFRS 16 leases: IFRS 16 lessees: the spreading rules
update to accounting
Introduction: Lease accounting: contents
updated accounting standards
Introduction: Lease accounting: Finance lessee’s balance sheet
change to accounting standards
IFRS 16 leases: IFRS 16 lessees: the spreading rules
incorporating new accountancy standard
IFRS 16 leases: IFRS 16 lessees: the spreading rules
Change in accountancy treatment
Introduction: Leasing: Importance of leasing
Page updated
Introduction: Leasing: Introduction to accounting standards
Update accountancy
Introduction: Leasing: The accounting definition of a lease
Updated accountancy
Updated accountancy
Introduction: Leasing: Lease classification
Updated accountancy
Introduction: Leasing: What is a finance lease?
Update to accountancy
Introduction: Leasing: What is an operating lease?
Updated accountancy
Introduction: Leasing: Operating leases - risks
Updated accountancy
Introduction: Leasing: Operating leases - examples
Updated accountancy
Introduction: Leasing: Introduction to operating leases and off balance sheet finance
Updated accountancy
Introduction: Leasing: Operating leases - off balance sheet finance example
Updated accountancy
Introduction: Leasing: leasing of real property
Updated accountancy
Introduction: Leasing: Capital allowances
Updated for SBA
Updated contents
Lease accounting: accounting standards: contents
Removal of obsolete pages
Lease accounting: accounting standards: introduction
Updated accountancy
Lease accounting: accounting standards: key differences between IAS 17 and FRS 102
Updated accountancy
Lease accounting: accounting standards: significance of IAS 39 and IFRS 9
Updated title
Updated accountancy
Lease accounting: Lease classification: contents
Updated index to remove obsolete pages
Lease accounting: lease classification: independent approach
Updated accountancy
Lease accounting: lease classification: practical issues with borderline issues
Updated accountancy
Lease accounting: lease classification: importance of borderline issues
Updated accountancy
Lease accounting: lease classification: practical indicators
Updated accountancy
Updated contents
Updated Index
IFRS 16 leases: IFRS 16 lessees: Example
Updated contents
Addition of chapters for IFRS 16
Lease accounting: lease classification: introduction to detail
Updated accountancy
Lease accounting: lease classification: minimum lease payments
Updated for accountancy changes
Lease accounting: lease classification: the term of a lease
Updated accountancy
Lease accounting: lease classification: 'fair value'
Updated accountancy
Lease accounting: lease classification: residual values and guarantees
Updated accountancy
Lease accounting: lease classification: inception and commencement
Updated accountancy
Lease accounting: lease classification: defining finance leases
Updated accountancy
Lease accounting: lease classification: meaning of 'present value'
Updated accountancy
Lease accounting: lease classification: defining operating leases
Updated accountancy
Lease accounting: operating lease accounting: introduction
Updated for accountancy changes
Lease accounting: operating lease accounting: lessor accounting for rental income
Updated accountancy
Lease accounting: operating lease accounting: lessor accounting for depreciation and costs
Updated accountancy
Lease accounting: operating lease accounting: lessees’ accounting
Updated accountancy
Lease accounting: operating lease accounting: operating lease incentives
Updated accountancy
Lease accounting: finance lease accounting: contents
Removal of obsolete pages
Lease accounting: finance lease accounting: outline
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessors: contents
Removal of obsolete pages
Lease accounting: finance lease accounting: finance lessors: Net investment in lease
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessors: finance income
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessors: 'interest' recognition example
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessees: contents
Removal of obsolete pages following accountancy update
Lease accounting: finance lease accounting: finance lessees: commercial substance
Update following introduction of IFRS 16
Lease accounting: finance lease accounting: finance lessees: balance sheet (general)
Update following introduction of IFRS 16
Updated following introduction of IFRS 16
Lease accounting: finance lease accounting: finance lessees: balance sheet depreciation (accounting)
Update following introduction of IFRS 16
Lease accounting: finance lease accounting: finance lessees: profit and loss account
Accountancy references updated
Updated accountancy
Updated following accountancy changes
Lease accounting: finance lease accounting: finance lessees: example 1: basic rental structure
Update following accountancy changes
Lease accounting: finance lease accounting: finance lessees: example 1: is this a finance lease?
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessees: example 1: apportioning the rentals
Updated for accountancy changes
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessees: example 1: the accounting entries
Updated for accountancy changes
Updated for accountancy changes
Updated accountancy.
Lease accounting: finance lease accounting: finance lessees: example 1: lease terminated early
Updated for accountancy changes
Updated accountancy
Updated accountancy
Lease accounting: finance lease accounting: finance lessees: example 2: contents
Removal of obsolete pages
Lease accounting: finance lease accounting: finance lessees: example 2: back-loaded rental structure
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessees: example 2: apportioning the rentals
Updated for accountancy changes
Updated for accountancy changes
Lease accounting: finance lease accounting: finance lessees: example 2: The accounting entries
Updated for accountancy changes
Lease accounting: leasebacks and sub-leases: contents
Updated index following introduction of IFRS 16 & corresponding simplification of guidance
Lease accounting: leasebacks and sub-leases: sale and finance leaseback under FRS 102
Amended from UK GAAP to FRS 102
Lease accounting: leasebacks and sub-leases: sale and operating leaseback under FRS 102
Change from UK GAAP to FRS 102
Lease accounting: leasebacks and sub-leases: lease and leaseback
Change from UK GAAP to FRS 102
Lease accounting: leasebacks and sub-leases: sub-leases and back-to-back leases
Updated to remove outdated accounting references.
Addition of material on IFRS 16 accounting
IFRS 16 leases: IFRS 16 lessees: Example
Additional example material for IFRS 16 leases
Rearrangement of contents page
Addition of IFRS 16 spreading chapter
Introduction: Leasing: What is leasing?
Inclusion of BLM 50000+ for IFRS 16
Guidance updated for IFRS16
Addition of guidance on IFRS 16