British American Tobacco (BAT) has announced plans to sell its 55 per cent stake in Formula One motor racing team BAR Honda.

The move by the UK-based cigarette manufacturer will hand complete control to Honda, which acquired a 45 per cent holding in the team in January.

The deal takes effect at the end of the year, although BAT will remain as the team's sponsor, through Lucky Strike, for the 2006 season.

BAT will then exit Formula One as it fulfils a pledge made in 2001 to meet new international guidelines on tobacco sponsorship.

BAR was set up as British American Racing by BAT in 1997.

After a challenging first few years, it rose to second place in the 2004 Constructors' World Championship, helped by the performances of British driver Jenson Button.

BAT marketing director Jimmi Rembiszewski said: ''It will be sad to end our association but it is immensely satisfying to leave the team in the competent hands of Honda, who are proven winners in the sport.''

The team is based at Brackley, in Northamptonshire.

The amount paid by Honda for the 55 per cent stake has not been disclosed.