Finance Lease
- Flexible up front initial rentals.
- VAT is paid on the rentals as they fall due.
- Unlike hire purchase, you can never own the asset. The leasing company retains title so that it can claim the tax allowances.
- At the end the primary period you pay nominal annual rentals.
- When you wish to dispose of the asset, which must be to an unconnected third party, you will receive a rebate in the region of 95%.
- The asset and associated lease debt is shown on your balance sheet.
- The rentals you pay are tax deductible.
