£300m tax saving for BT
Telecommunications giant BT has moved to cut deferred tax liabilities by as much as £300m through a sales and leaseback deal of its telecoms equipment, the Daily Telegraph reports.
The deal, with French-owned Bank Societe Generale, began on 4 December and will initially last for five years.
The deal, which takes advantage of a loophole in Section 222 of the Capital Allowances Act, is believed to be one of the biggest of its kind.
A spokesman for BT said: ‘This sort of transaction represents a well-trodden path by many companies over a number of years, and provides an efficient form of financing for our network operations, which generates value for the group.’