The technical note issued on 29 October 2018 suggested, based on the same logic underlying the long-funding lease rules for plant and machinery, that there will be cases where the granting of a lease is substantially the same as the purchase of an interest in land. In consequence, the entitlement to SBA of the lessor should be reallocated to the lessee.

At each end of the spectrum, the outcome will be straightforward:

where a lease is a granted at a full market rent with no lease premium paid by the lessee, the lessor will continue to claim SBA;

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