SCHEDULES

SCHEDULE 12 Leasing arrangements: finance leases and loans

Part IV Supplementary provisions

Accountancy rental earnings

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(1)

For the purposes of this Schedule, the “accountancy rental earnings” in respect of the lease for a period of account of the lessor is the greatest of the amounts specified in sub-paragraph (2) below.

(2)

Those amounts are—

(a)

the rental earnings for the relevant period in respect of the lease, in the case of the lessor;

(b)

the rental earnings for the relevant period in respect of the lease, in the case of a person connected with the lessor;

(c)

the rental earnings for the relevant period in respect of the lease, for the purposes of consolidated group accounts of a group of companies of which the lessor is a member.

(3)

In sub-paragraph (2) above, “the relevant period” means the period of account of the lessor which is mentioned in sub-paragraph (1) above.