For UK SMEs and their accountants
Lease accounting software for the UK
UK lease accounting now means FRS 102 Section 20: right-of-use assets, lease liabilities and new disclosures for periods beginning on or after 1 January 2026. The software you choose should handle the UK specifics natively: SONIA-based discount rates, incentives and dilapidations, the modified retrospective transition, and journals for Xero, Sage or Dynamics 365.
Six things UK lease accounting software must do
The checklist we would use whether or not you choose Lease102.
FRS 102 Section 20 as the primary standard
UK GAAP reporters need Section 20 logic natively: the obtainable borrowing rate, UK-style incentives and dilapidations, and FRS 102.20 disclosures, not an IFRS 16 engine with a mapping layer.
UK reference rates built in
Discount rates for most UK SMEs start from a SONIA base plus a credit spread. Software that carries the daily rate and documents the derivation per lease saves the audit conversation later.
Extraction instead of rekeying
UK commercial leases run to dozens of pages. AI extraction of the commencement date, term, payments, breaks and options cuts setup from hours to minutes per lease.
The 2026 transition handled
Most UK portfolios are transitioning now. The tool should compute opening balances under the modified retrospective approach at your date of initial application, not just steady-state periods.
Journals your ERP accepts
Day 1 recognition, monthly interest and depreciation, remeasurements: as posting-ready journals for Xero, Sage or Dynamics 365, mapped to your chart of accounts.
Audit trail and UK/EU hosting
A reconcilable history of every input change, seven-year retention aligned to the Companies Act 2006, and data hosted in the UK or EU.
Where Lease102 fits
Lease102 is built for exactly this list: a Section 20-native engine, live SONIA and €STR reference rates for the obtainable borrowing rate, AI extraction from lease PDFs, bulk transition calculations with a per-lease auditor memo, journal export to Xero, Sage and Dynamics 365, and a full audit trail: from £20 per month + VAT with published pricing at every tier.
It is not the right tool for everyone: groups reporting under IFRS 16, or portfolios needing multi-standard consolidation, are better served by the enterprise platforms. Our buyer's guide compares the main UK tools side by side, including where the alternatives are stronger.
Lease102 publishes its pricing: from £20 per month + VAT, with a 14-day free trial and no card required. See the full price list.
Frequently asked questions
What does lease accounting software do?
It holds the lease register, calculates the present value of lease payments (the lease liability) and the right-of-use asset for each lease, produces the period-by-period amortisation schedule, generates the journals for your accounting system, and outputs the disclosure notes for the financial statements. Good tools also handle events during the lease: modifications, rate reviews, terminations and impairments.
Which accounting standard applies to UK lease accounting?
Most UK companies report under FRS 102 (UK GAAP), where Section 20 governs leases; from periods beginning on or after 1 January 2026 it requires on-balance-sheet treatment for lessees. UK-listed groups and some others report under IFRS, where IFRS 16 applies. Micro-entities can use FRS 105 and keep expensing leases. The right software depends on which of these you report under; Lease102 is built specifically for FRS 102 Section 20.
How much does lease accounting software cost in the UK?
The market splits in two. Enterprise multi-standard platforms are quote-only and priced for large portfolios, commonly four or five figures a year, and usually involve a procurement process and an implementation fee. SME-focused tools publish their pricing, typically low tens of pounds per month, and let you start without talking to anyone. Which half you belong in depends less on your lease count than on whether you also report under IFRS 16 or US GAAP. For a UK-only FRS 102 portfolio, published-pricing tools generally cost less than the accountant time a spreadsheet consumes.
Can I not just use a spreadsheet for FRS 102 leases?
You can for one or two simple leases, and many firms started there. The difficulty is everything after Day 1: remeasurement when a rent review lands, incentives and dilapidations in the right place, a maturity analysis by time band, and an audit trail for every figure. Spreadsheet errors in present-value formulas are the most common finding we hear about from auditors; dedicated software exists to remove exactly that risk.
Does Lease102 work for accountancy firms with many clients?
Yes. The Practice tier keeps each client as its own portfolio with one login for the firm, per-active-lease billing rather than per-client subscriptions, and role-based access so staff see only their engagements. Firms use it to run FRS 102 transitions and ongoing lease accounting across their client base.
Is UK GAAP lease accounting the same as IFRS 16?
Not the same, but much closer than it used to be. UK GAAP lessees follow FRS 102 Section 20; IFRS 16 is the international standard. Since the 2026 amendments both put most leases on the balance sheet as a right-of-use asset and a lease liability, so the shape of the answer is similar. FRS 102 keeps simplifications aimed at smaller entities, the obtainable borrowing rate being the one most SMEs notice, which is why software built for IFRS 16 and configured for FRS 102 often handles the UK detail less directly than a Section 20-native tool.
Where is my UK lease data hosted?
Lease102 hosts customer data in the UK and EU, keeps a seven-year audit trail of every change on every plan, and lets you export everything you have put in at any time. Data residency is worth asking any vendor about directly, along with what happens to your data if you stop paying: some tools make an export a paid or manual step.
Keep going
Compare the UK tools
Neutral side-by-side comparison of the main FRS 102 lease accounting software.
Learn moreFree FRS 102 lease calculator
Lease liability, right-of-use asset and P&L impact from your rent and rate.
Learn moreThe 2026 changes
What changed in FRS 102 lease accounting, who is affected and how to transition.
Learn moreFor accountancy firms
The Practice tier: every client portfolio under one login, per-lease billing.
Learn more