email usLease Rental
Leasing is a contract between the leasing company, the "lessor", and the customer, the "lessee".
The leasing company buys and owns the asset that the lessee requires.
The customer hires the asset from the leasing company and pays rental over a pre-determined period for the use of the asset.
The leasing company can sometimes claim capital allowances on the assets. These benefits are usually passed onto the lessee in the form of reduced repayments.
There are two types of leases: Finance Leases and Operating Leases
Finance Leases
Under a finance lease the rental covers virtually all of the costs of the asset, therefore the value of the rental is equal to or greater than 90% of the cost of the asset.
The leasing company claims written down allowances, whilst the customer can claim both tax relief and VAT on rentals paid.
