Flexible finance for business and personal customers
Business Customers Only
Finance Lease is method of acquiring an asset at a fixed repayment over a fixed period.
Particularly appropriate if it is likely that there will be insufficient profits to claim all available capital allowances.
At the end of the lease period you can either return the asset, extend the lease or sell the asset to a third party. If the asset is sold you would normally be entitled to 95% of the sales proceeds.
If you decide to lease the asset for a further period, you'll pay a nominal annual rental. This extension period normally lasts for the useful life of the asset.
Business Users
You do not pay the VAT on the purchase price, the Finance Company pays this to your supplier. Therefore you cannot reclaim this VAT.
Monthly repayments are vatable and you reclaim this via your VAT return.
The asset is shown on your Balance Sheet although you do not reclaim Writing Down Allowances.
Monthly repayments can be allowable against Corporation Tax.
