Finance Leasing Manual - FLM31.84

Fifth condition: 'directly or 'indirectly'

The use of the expression 'directly or indirectly' in describing the acquisitions targeted by the fifth condition in Paragraph 3(5) Schedule 12 FA 1997 is also aimed at ensuring that exit arrangements can easily be designed to side-step the provisions. An example of an indirect acquisition would be one where the lessor first sells the leased asset to a nominally independent intermediary who can in fact be relied on to sell the asset on to the lessee.