380O Cars: provisions where hirer becomes owner

This section provides that where a vehicle is leased and ultimately passes into the ownership of the lessee, then the total amount paid will be apportioned. A cost equal to the purchase price of the car will be treated as having been incurred at the time the primary leasing period began. Any balance is adjusted proportionally on the basis of the emissions category of the car and treated as an expense of leasing.

Relevant Date: Finance Act 2021