BLM32010 | Taxation of leases that are not long funding leases: finance lessees: general issues: review of new leasing arrangements

A lease is an agreement whereby one person (the lessor) hires an asset to another (the lessee) for a rent. There is one underlying asset; but two different interests. The relationship between the parties is determined first and foremost by the lease agreement. Where it becomes necessary to look closely at a leasing transaction, the starting point is to examine a copy of the lease agreement.