The tax gain under a lease agreement can be far more beneficial to a profit making organisation than any other method of acquiring goods. When equipment is leased, the rental charge is fully offset against the system users' business profits, reducing their level of tax.
When equipment is purchased outright, the capital expenditure (after AIA*) is written down over a number of years providing much slower tax offset. For example, a 3 year lease term can save more in tax offset than the finance charge itself!
Local Authority clients
Leasing remains popular for these and other non-profit making organisations due to our fixed rental charge with whole system solutions achieved on a restricted budget. Payments can even be adjusted to suit budget flow.
*Annual Investment Allowance