BLM35050 - Taxation of leases that are not long funding leases: sale and leaseback: leased assets made subject to a new finance lease

Where assets which are already finance-leased (rather than owned outright) are made subject to a new finance lease between the parties to the original lease, the accounting treatment should not cause any difficulties for tax purposes.

If, however, you come across a situation where a re-financing exercise appears to give a tax advantage you should seek advice from CS&TD.