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No catching-up charge is imposed when a ‘post-25 November 1996� lease first comes within Chapter 2 of Part 21 of CTA 2010 because the accountancy measure of rental income from the lease (‘accountancy rental earnings�) should not have systematically exceeded the taxable measure for previous periods (the ‘normal rent�).

• In the case of a lease which is initially a finance lease (or loan) Chapter 3 of Part 21 of CTA 2010 will have applied to it and the excess of accountancy rental earnings over normal rents will have been recognised as income. CTA10/S924 provides continuity of treatment of excesses in this situation (see BLM73010).
• In the case of a ‘post-25 November 1996â€� lease which is an operating lease the general rules applicable to the head of charge at issue (usually trading income but sometimes property income) will ensure that a satisfactory measure of income is brought to account for tax.