BLM74315 - 바카라 사이트™Income-into-capital바카라 사이트™ schemes and back loaded leases: Lease changes: 바카라 사이트˜new바카라 사이트™ operating lease becomes a finance lease
Whenever a 바카라 사이트˜post-25 November 1996바카라 사이트™ lease, initially treated as an operating lease, is reclassified as a finance lease (or loan), whether because its terms change or because accountants change their view of it, the rules in Part 21 of CTA 2010 (Chapter 2 or Chapter 3 as the case may be) apply from that point. For the reasons set out in the next paragraph no 바카라 사이트˜cumulative excesses바카라 사이트™ (see BLM72001) are brought forward from earlier periods when the lease was classified as an operating lease.
No 바카라 사이트˜cumulative excesses바카라 사이트™ are brought forward from earlier periods because, by definition, 바카라 사이트˜accountancy rental earnings바카라 사이트™ cannot be derived from an operating lease. The underlying definition of 바카라 사이트˜rental earnings바카라 사이트™ is the income derived from what accountants regard as a finance lease or loan. By virtue of CTA10/S909(1) a normal rental excess can only arise in a period of account in which a lease is classified as a finance lease (or loan).