The SORP considers accounting issues from the lessor s perspective and its recommendations are based upon existing accounting standards issued in the UK and Ireland. The Chancellor announced in his Budget statement today reforms in the tax treatment of sale and leaseback transactions. The guide which was originally published in 1993 has been updated to take into account changes in legislation including the Consumer Credit Act and Data Protection Act. The guide has been produced by the credit industry and credit reference agencies. Recent tax changes to the taxation of leased assets, including the regime for SME capital allowances have distorted the tax system.
Investment seems to be picking up.
The paper purports to cover the implementation of an approach first mooted in 1996 by Sir David Tweedie s Australian counterpart, but seems to focus much more on exploring principles .