The finance lease test looks at the accounting treatment of
the lease in the accounts of the lessor and of any person connected
with the lessor. For this purpose, ‘accounts’ includes
group accounts.
Connected person takes the definition in ICTA88/S839.
Without this rule it would be easy for a lessor to treat the
lease as an operating lease and for the group to treat it as a
finance lease, thus side-stepping the finance lease test.
