Finance Lease

  • A Finance Lease allows you to essentially rent assets over a fixed period.
  • VAT is charged with monthly rentals which reduces the initial outlay.
  • Ownership of the asset always stays with the finance provider but at the end of the agreement you can continue to use the asset for a nominal annual amount.
  • When you no longer need the asset a high proportion of the sale proceeds are given back as a rebate.


  • The asset is shown on your balance sheet.
  • Usually low initial outlay.
  • VAT collected throughout the life of the agreement.
  • Helps with budgeting for both cash flow and growth projects.
  • Can offset the monthly rentals against taxable profits.