UK: Guidance on taxation of lease in-lease out (LILO) arrangements

Issued September 4, 2025

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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

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