From a commercial point of view the object of a sale and
lease-back is to obtain funds for general business purposes or to
refinance existing borrowing. If the funds are not used for
business purposes, it may be appropriate to look more closely at
the deductibility of the rents paid under the lease-back, in
particular that part of the rents which in the case of a finance
lease is treated as the financing charge or interest. This is
considered further at
BLM35070.
