Finance Lease Explained
Cashflow Benefits
Finance Leasing can be one of the most cost effective options, if you need full use of a vehicle for minimum outlay but do not require final ownership.
Tax Implications
The rentals can be offset against taxable profits. If you are VAT registered, 100% of the VAT payable on the rentals can be reclaimed for any commercial vehicle or car used exclusively for business purposes. 50% of the VAT can be reclaimed for a car used for both business and private mileage.
Who Owns the Vehicle at the End of the Agreement ?
At the end of the lease the vehicle is sold and the sale proceeds (less a nominal sum) are refunded to you as a rebate of rentals, which attract VAT. Due to its low initial outlay, fixed costs throughout the rental period, excellent tax efficiency and flexibility, Finance Lease is favoured by many business users.
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