Lease vs Purchase
Lease
Purchase
Vehicle Ownership
Us
Vehicle Ownership
Yours
Tax exemption on depreciation
You are allowed to claim the whole amount of rent as tax deductible expense e.g. save 12.5% in tax
Tax exemption on depreciation
Depreciation of Saloon vehicles value (incl. VAT) is not an allowable tax expense so there is no saving on 12.5% tax
Tax exemption on all vehicle expenses
(except fuel)
All costs (except fuel) are included in the rent and allowed as tax deductible expenses
Tax exemption on all vehicle expenses
(except fuel)
Expenses on saloon vehicles are not an allowable tax expense so there is no saving on 12.5% tax
Tax penalties
None
Tax penalties
Saloon vehicles are penalized with a deemed interest income on the company for 7 years (or years in ownership if less than 7) and is taken at full value of the vehicle including VAT for the duration of this ownership. So additional tax expense of 12.5% on the deemed interest income
Insurance costs
Included Comprehensive
Insurance costs
At your expense
Road tax, Service costs, Any other repairs, Wheel alignment, Tyres*
Included
Road tax, Service costs, Any other repairs, Wheel alignment, Tyres*
At your expense
Courtesy vehicle in case of unavailability due to breakage or total loss
Included
Courtesy vehicle in case of unavailability due to breakage or total loss
None
Cash flow
Monthly payment
Cash flow
Immediate outflow of the whole value of the vehicle
Cost of funding
None
Cost of funding
Yes when financed out of overdraft of loan
* Subject to the Terms and Conditions
Lease
Vehicle Ownership
Us
Tax exemption on depreciation
You are allowed to claim the whole amount of rent as tax deductible expense e.g. save 12.5% in tax
Tax exemption on all vehicle expenses
(except fuel)
All costs (except fuel) are included in the rent and allowed as tax deductible expenses
Tax penalties
None
Insurance costs
Included Comprehensive
Road tax, Service costs, Any other repairs, Wheel alignment, Tyres*
Included
Courtesy vehicle in case of unavailability due to breakage or total loss
Included
Cash flow
Monthly payment
Cost of funding
None
* Subject to the Terms and Conditions
Purchase
Vehicle Ownership
Yours
Tax exemption on depreciation
Depreciation of Saloon vehicles value (incl. VAT) is not an allowable tax expense so there is no saving on 12.5% tax
Tax exemption on all vehicle expenses
(except fuel)
Expenses on saloon vehicles are not an allowable tax expense so there is no saving on 12.5% tax
Tax penalties
Saloon vehicles are penalized with a deemed interest income on the company for 7 years (or years in ownership if less than 7) and is taken at full value of the vehicle including VAT for the duration of this ownership. So additional tax expense of 12.5% on the deemed interest income
Insurance costs
At your expense
Road tax, Service costs, Any other repairs, Wheel alignment, Tyres*
At your expense
Courtesy vehicle in case of unavailability due to breakage or total loss
None
Cash flow
Immediate outflow of the whole value of the vehicle
Cost of funding
Yes when financed out of overdraft of loan
