Farming client is looking to construct some sheds and this is an option that is being pushed by the finance company claiming it will get them 100% tax relief on the buildings. It looks like they pay the supplier direct to construct the buildings. Once constructed, they own the title, and enter into a 5 year lease agreement with our client. At the end of the 5 years they will then offer the title to our client for 1% of the construction cost.
Clearly at some point the title to the land passes to the finance company but that part isn’t clear.
It’s late and my brain isn’t really working, but it just doesn’t feel right on first reading and I’ll need to do some more digging.
I’ve seen similar arrangements with plant and machinery items, but not a building.
I was just wondering if anyone had seen any similar arrangements?