Sale and Leaseback

sale and leaseback finance is where a company raises money from the sale of some of its assets, while retaining use of them.

Typically land and buildings, motor vehicles and plant and machinery.

For example if you have plant and machinery that you purchased outright, you may be able to sell it to a finance company who will then lease it back to you to use.

The tax consequences of sale and leaseback needs considering carefully as the sale will usually result in a taxable profit or loss.