BLM70426 - ‘Income-into-capital’ schemes and back loaded leases: Definition of a Chapter 2 of Part 21 CTA 2010 lease: Condition A: lease must be a finance lease

Most leases to which Part 21 CTA 2010 apply will be treated as a finance lease in the lessor’s accounts. So it is immediately clear that the first condition is satisfied.

Conversely, most leases that are not treated in the accounts as finance leases will be outside the scope of Part 21.

But the provisions have been drafted to secure that a lease that is not presented in the accounts as a finance lease also satisfies the condition where it would be treated as a finance lease if UK accounting standards were applied to it.