Market leading insight for tax experts
View online issue

The accounting and tax treatment of leased chattels

Speed read

The taxation of leased chattels depends principally upon the type of asset being leased, whether the lease is a finance lease or an operating lease, and whether or not it is treated for tax purposes as a long funding lease. Whilst the rules are complex, the tax treatment for most leases mirrors the accounting treatment; however, when taxing plant and machinery leases, long funding leases follow a finance lease model, and non-long funding leases follow an operating lease model. The expiry of a lease will ordinarily not give rise to any UK tax implications, but tax implications may arise where a payment is made at the end of a lease.

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.