Finance Leasing Manual - FLM31.80

Fifth condition: the future event

The future event is that

• the lessee or a person connected with the lessee: 'may acquire, whether directly or indirectly, the leased asset, or an asset representing the leased asset, from the lessor or a person connected with the lessor'; and

• 'in connection with that acquisition the lessor or a person connected with him may receive, whether directly or indirectly, a qualifying lump sum from the lessee or a person connected with the lessee' (Paragraph 4(1) and (3) Schedule 12 FA 1997).

Guidance on 'an asset representing a leased asset' is at FLM31.81; on a 'qualifying lump sum' is at FLM31.83; and on the meaning of 'directly or indirectly' is at FLM31.84.