BLM32350 - Taxation of leases that are not long funding leases: finance lessees: termination adjustments: part exchange - hire purchase
»Ê¹ÚÌåÓýapp part exchange problem illustrated by the example at BLM32345 is unique to finance leases. If the asset was bought outright or purchased under an HP type lease, the trade-in value of the asset would decrease, and the cost of the new asset would increase, the capital allowances pool. So by off-setting there would be no net difference. But that is not the case where a finance lease is involved.