BLM23005 - LFLs: commencement and transition: introduction

The rules for taxing long funding leases were introduced in FA 2006, following a period of constructive consultation.

Responding to calls for an early announcement of when the new regime would begin, and for details of the transitional rules that would apply, the then Paymaster General, Dawn Primarolo, announced on 21 July 2005 that the long funding lease regime would be introduced with effect from 1 April 2006.

This announcement was accompanied by a Technical Note explaining, among other things, that some of the transitional rules would take effect from the day of the announcement, 21 July 2005.