|
Hire/Lease purchase |
Contract purchase |
Finance lease |
Operating lease |
Contract hire |
|
|---|---|---|---|---|---|
| Will we own the asset? | Yes | Possible | No | Possible ** | No |
| Are rentals tax deductible? | Interest only | Interest only | Yes | Yes | Yes |
| Does this route preserve capital? | Yes | Yes | Yes | Yes | Yes |
| Can I have fixed or variable rate? | Yes | No | Yes | Possible | No |
| Can we claim capital allowances? | Yes | Yes | No | No | No |
| Will the rental payment figure be linked to future value of asset? | No | Yes | No | Yes | Yes |
| Can VAT on payments be reclaimed? * | Not applicable | Not applicable | Yes | Yes | Yes |
| Can VAT on cost of asset be reclaimed? | Yes | Yes | No | No | No |
| Will service and maintenance be included? | No | No | Possible | Possible | Yes |
- * Special rules apply to company cars
- ** 'Planned rental' product only
