BLM71005 - 바카라 사이트˜Income-into-capital바카라 사이트™ schemes and back loaded leases: 바카라 사이트˜Income-into-capital바카라 사이트™ schemes: comparison with ordinary loan
Suppose a Borrower wants to take out a loan of £10 million from a Bank for ten years at a commercial rate of interest, say 10%. If the Bank simply lent £10 million the Bank would pay tax on interest earnings of £1 million a year (after deductions for its financing and other costs). The main aim of the 바카라 사이트˜income-into-capital바카라 사이트™ leasing schemes was to convert the interest receipt into a non-taxable capital sum. The bank then saves a £300,000 a year in tax (£1 million at 30%), which competitive pressures generally ensure is partly passed on to the Borrower in the form of reduced interest costs.