Readers’ forum: Is there a tax reason why a lessor can’t buy a van directly?

My client leases vans and would like to purchase them at the end of the lease.

He has been advised by the lessor that he can only do this by selling the van to a third party and then buying it back off that third party.

I am concerned that there is a non-commercial step in the arrangement and wonder if HMRC could perhaps raise tax issues.

In particular VAT seems to be a risk but I have not been able to find a definitive answer as to why the lease company would suggest the third party route. I can see however that this is a common solution showing on a number of lease company websites so it seems to be happening in the open.

If someone can explain why my client can’t just buy the van directly off the lease company I would be...