UK: Guidance on taxation of lease in-lease out (LILO) arrangements
Issued September 4, 2025
HM Revenue and Customs (HMRC) on September 4, 2025, issued new guidance regarding taxation of lease in-lease out (LILO) arrangements.
The guidance discusses the need for the intermediary to classify the sublease as a finance lease by reference to the headlease right of use asset.
Read a September 2025 report prepared by the KPMG member firm in the UK