HMRC internal manual

Business Leasing Manual

BLM71425 - ’Income-into-capital’ schemes and back loaded leases: 'Income-into-capital' schemes: Purchase options: granted to

In an income-into-capital scheme the purchase option may be held by:

  • the Borrower’s lessee company; or
  • a company connected to that lessee company; or
  • conceivably an unconnected third party who has an option to acquire the asset from the Bank group while the Borrower group has another option to acquire the asset (or a similar asset) from the third party.