BLM70020 - 鈥業ncome-into-capital鈥� schemes and back loaded leases: Introduction to back-loaded leases: lessors' earnings within property income
Many, if not quite all, of the finance leases in 鈥榠ncome-into-capital鈥� schemes involved real property assets. By exploiting the differences between the then 鈥榚ntitlement鈥� basis for property income and the 鈥榓ccruals鈥� basis, it was easy to ensure that the rentals taxable in any period were the low amount desired by the lessor even though they were reporting higher earnings in their commercial accounts.