The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
This Practice Note looks at two other important types of leasing transactions that may arise, outside the standard operating or finance leases. The most suitable particular structure used in each transaction will change from time to time as they will be influenced by the taxation environment and the regulations that exist in the countries in which the transaction is to be structured. The majority of leasing transactions are set up to seek to obtain the maximum tax benefits and allowances possible and so leasing structures will depend to a significant extent on the tax and accountancy laws in any particular jurisdiction.
Synthetic leases were developed in the United States and are a structure that is treated as a lease for accounting purposes but as a loan for tax purposes. The asset is in effect owned indirectly by the lessee/operating company and the company leases the asset to itself. The structure allows that:
for accounting purposes the asset is owned by a special purpose vehicle (SPV) and is then leased to the operating company (the lessee) under an operating lease. The lease agreement requires the lessee to pay periodic lease payments. For further information on operating leases, see Practice Note: Operating leases. In practice, the SPV is typically owned by the lessee but is kept off the balance sheet of the company. The asset itself
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
When is quantum meruit and quantum valebat relevant?Claims in quantum meruit (value of services) and quantum valebat (value of goods) arise in diverse situations ranging from where contractual terms are silent on issues of payment to where there is no contract at all (Serck v Drake & Scull).General
Broadly, the doctrine of overreaching enables purchasers (which includes tenants and mortgagees) in good faith for money or money’s worth to rely solely on the legal title. In the case of registered land, this means the entries entered on the register of title, as it records ownership of the legal
An intention to create legal relations is requiredThere are various situations in which a court will hold that an agreement is not binding because, though supported by consideration, it was made without any intention of creating legal relations (see, eg, Blue v Ashley).Did the parties intend to
Background to the Single RulebookHistorically, the European Commission (Commission) favours using Directives (rather than Regulations) to set out its legislation in respect of the financial services sector. However, Directives, allowing Member States greater flexibility in how they implement
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.