225 B’s qualifying expenditure if lessor not bearing non-compliance riskU.K.
(1)This section applies if plant or machinery is the subject of a sale and finance leaseback, and the finance lease, or any transaction or series of transactions of which it forms a part, makes provision which—
(a)removes from the lessor the whole, or the greater part, of any risk, which would otherwise fall directly or indirectly on the lessor, of any person sustaining a loss if payments under the lease are not made in accordance with its terms, and
(b)does so otherwise than by means of guarantees from persons connected with the lessee.
(2)In such a case the following are not qualifying expenditure for the purposes of this Part —
(a)B’s expenditure under the relevant transaction;
(b)if the lessor is a different person from B, the expenditure incurred by the lessor on the provision of the plant or machinery.
(3)For the purposes of determining whether this section applies, the lessor and the persons connected with the lessor are treated as the same person.