Introduction The “sale and leaseback” and “sale and finance leaseback” definitions
45.The definitions of “sale and leaseback” and “sale and finance leaseback” at sections 216 and 221 of CAA are aimed at avoidance involving connected party leasing arrangements that:
	seek tax relief in excess of the cost to the seller’s group, or
	effectively sell capital allowance entitlement to third parties.
The existing definitions do not cover arrangements involving the leaseback to a person connected to the seller who is already leasing the asset and continues to do so.
46.This measure amends the definitions to ensure that they include arrangements involving a leaseback to a continuing user of the asset.