BLM71035 - Schedule 12 FA 1997:
'income-into-capital' schemes: other features
'Income-into-capital' schemes may include the following
further features:
- the asset is sold by one member of the
Borrower group and leased back to another;
- where the leased asset is real property,
very occasionally the purchase option is not over the asset but
over the shares in the Bank's leasing subsidiary (which is formed
just for the purpose of holding the property) - see
BLM70475;
- the purchase option is held by another
member of the Borrower's group (that is, neither the original
seller nor the lessee).
The third variation above was common because it gave the
Borrowing group indirect relief for the interest on the capital
sum. Further details about this are at
BLM71401 onwards.
