Section 57A — Finance Act 2003: Sale and leaseback arrangements

Sale and leaseback arrangements 57A 1 The leaseback element of a sale and leaseback arrangement is exempt from charge if the qualifying conditions specified below are met.

2 A “ sale and leaseback ”arrangement means an arrangement under which—

a A transfers or grants to B a major interest in land (the “sale”),

and b out of that interest B grants a lease to A (the “leaseback”).

3 The qualifying conditions are—

a that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into, aa that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into, b that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both),

c that the sale is not a transfer of rights within the meaning of ... 45A (contract providing for conveyance to third party: effect of transfer of rights) or a pre-completion transaction within the meaning of Schedule 2A (transactions entered into before completion of contract) , and d where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date. e where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .