| Finance Options |
- Finance lease
- A full payout agreement where title remains with the lessor
- VAT is paid on each rental
- The lease rental can be treated as an operating expense against taxable profits
- The lessor claims the writing down allowances
- Operating Lease
- Similar to a finance lease but where the full life of the asset is not required by the customer
- A usage agreement, where the lessor assumes a residual value risk in the equipment which lowers the payments for the customer.
- Lessor recovers the residual value by selling the equipment at the end of the lease
- VAT and TAX treatment similar to a Finance Lease
- Hire/Lease Purchase
- A full payout agreement where title passes to the customer at the end of the agreement for a pre-determined amount.
- VAT is payable in full at the start of the agreement
- Customer claims writing down allowances
- Rental payments cannot be off set against taxable profits
|
| 