Capital allowances for leased assets

1. [Definition](https://library.croneri.co.uk/po-heading-id_MzimCVbo10i24e0VPtlYQg)

1.1. Long funding lease

1.1.1. Funding lease

1.1.2. Is not excluded

1.1.2.1. Short lease

1.1.2.2. Background P&M

1.1.2.3. Lessor entitled to CAs

1.2. Funding lease

1.2.1. P&M lease

1.2.2. Meets at least one test

1.2.2.1. Finance lease test

1.2.2.2. Lease payments test

1.2.2.3. UEL test

1.2.3. Not HP

1.3. [:thumbsup: Resources: Decision trees](https://library.croneri.co.uk/po-heading-id_8s-M8YDbM0K7GIF-vWY8oQ)

2. [Other lease](https://library.croneri.co.uk/po-heading-id_hHb7lwk-d0SKffVl571DuA)

2.1. Lessor has capital allowances

2.2. May elect for long funding lease treatment

3. [Overview](https://library.croneri.co.uk/po-heading-id_MLZ1xi8eSUuq0ujiAsfeAg)

3.1. General rule

3.1.1. Lessor claims CAs

3.2. Spring Budget 2024: announcement that full-expensing to be extended to leased assets 'when affordable'. Draft legislation and consultation to follow.

3.3. Exceptions

3.3.1. Long-funding lease

3.3.2. HP and similar contracts

3.3.3. Lessee required to incur expenditure

4. [Long funding lease](https://library.croneri.co.uk/po-heading-id_deuFnWjEw0mcxewoNHWR0w)

4.1. Lessee has CAs

4.2. Qualifying expenditure

4.2.1. Long funding operating lease

4.2.1.1. MV of P&M

4.2.2. Long funding finance lease

4.2.2.1. Present value of payments

4.3. Disposal values

4.3.1. (QE-QA) + R

4.3.1.1. QA depends on lease