This article relates to the taxation treatment of leases other than long funding leases of plant and machinery. For details on long funding leases, see µþ5.405–B5.409´¡. For details on the capital allowances treatment of leases, including long funding leases see µþ3.340´¡â€“B3.340´Üµþ.
Right of use assets
Changes to FRS 102 in 2024 mean that for lessees all leased assets are accounted for in the same way for periods beginning on or after 1 January 2026 (early adoption permitted). This is known as a 'right of use' lease and applies to plant and machinery and also to property leases. HMRC guidance is set out in BLM50000 onwards. The FRS 102 revised accounting treatment (FRS 102 (2024)) is similar to leases accounted for under IFRS 16 with some simplifications. It should be noted that these changes do not apply to businesses that use FRS 105, for micro-entities, to prepare their financial statements and also there are no changes in the accounting treatment for lessors. See more details in B5.403.
Some tax legislation has a finance lease
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:16