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Where Taxpayers and Advisers Meet

Lease of no value

SPRINTERS
Posts:2
Joined:Wed Aug 06, 2008 3:37 pm

Postby SPRINTERS » Mon Mar 19, 2007 12:42 pm

We entered into a so called lease agreement with a finance company for some plant and machinery, on a sale and lease back basis.

To cut a long story short, they stitched us up with the lease and are now going for repossession of my property secured on the lease,(more fool me).
The value of the equipment in the lease transaction was minimal, £500 tops, they said it did not matter as it was only a technicality for consideration purposes.

They loaned £30,000 on this lease. Is this still classed as a lease in the eyes of the law, and can this finance company claim tax allowances on this lease to their benefit. I know that they have done the same to other people, one chap hung himself because of this finance company, his widow said that they lent £380,000 on goods valued at £80,000 tops, again the leases were secured by property.
The leases are also asigned to other lenders who probably believe the goods on lease are worth the true value of the lease, is this illegal.
I realise that not all the points above are relevant from a tax point of view, any help would be appreciated. I have been to a solicitor who can't seem to get his head around the tax aspect of these deals.
I believe that they are defrauding their creditors ie; The tax man for one. The value of the finance companies leases from companies house is £26 million so quite a large tax evasion scheme could be going on here.

many thanks for reading,

Graham

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