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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