BLM32520 - Taxation of leases that are not long funding leases: finance lessees: importance of lease term: no secondary period: back-loading of rentals
Leases with no secondary lease period are sometimes coupled with the back-loading of lease rental payments. »Ê¹ÚÌåÓýapp rentals in the early years may be less than the financing costs. If so, there may be tax consequences for the lessor under Part 21 CTA 2010 / Part 11A ITA 2007 (see BLM70000 onwards) which you should draw to the attention of the lessor’s district.