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![[Under Construction]](images/undercon.gif)
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k e n n e t
E Q U I P M E N T L E A S I N G
Comparison of Leasing tax relief against
Cash/Hire purchase tax relief
Cash/Hire
Purchase
| Cash price
net of VAT |
|
£6,000 |
| |
|
|
| 50% |
allowance
given in year 1 |
£3,000 |
| 13% |
allowance
given in year 2 |
£750 |
| 9% |
allowance
given in year 3 |
£563 |
| 72% |
allowance
given over the useful life of the asset |
£4,313 |
Lease Purchase
| Cash price
net of VAT |
|
£6,000 |
| |
Under generally accepted accounting
principles you are able to claim 100% tax relief over the useful life of
the equipment, which is usually taken to be the term of the lease |
|
| 33% |
allowance
given in year 1 |
£2,000 |
| 33% |
allowance
given in year 2 |
£2,000 |
| 33% |
allowance
given in year 3 |
£2,000 |
| 100% |
allowance
given over the useful life of the asset |
£6,000 |
Comparison of Leasing tax relief against
Cash/Hire purchase tax relief
Assumptions
| Capital cost of
equipment |
£6,000 |
| Useful life |
3 |
| First year allowance
rate |
50% |
| Writing down allowance
|
25% |

For more information on how leasing can
help you call:
Laura Tocknell on 01675 469224
f: 08717 334836
or Vicki Jeynes on 01675 469207
Quote Ref: Fleet Parts Ltd
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