Leasing is a VAT-beneficial option where the hirer can choose to pay for the entire cost of the asset over an agreed period. The hirer does not normally take ownership of the asset once the final rental has been paid, but will normally have an option to continue renting the asset over an extended period. Under a finance lease the asset is still entered as a capital item on the hirer's balance sheet.
The lender claims the "capital allowances" on the asset. This usually allows the hirer to offset 100% of the rentals against taxable income in addition to the VAT reclaimable on each rental.
Independent finance and leasing specialists
P O Box 3185, Sheffield, South Yorkshire, S35 7WZ
Mobile: 07717-858888 Tel: 01142-830805 Fax: 01142-830844
Co. Reg. No: 5655963