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Benefits of Leasing
Full use of vehicle without ownership. (The car is still classed as an asset and shown on the balance sheet, so improving the book or accounting value of the business)
A percentage of the VAT added to rentals can be reclaimed. (Reclaim 50%, which lowers the gross rentals cost) The other 50% of VAT charge can be offset against your tax bill as per the %age of monthly rental
VAT on cost of the car is recovered by finance company. (Benefits of a lower capital cost to the finance company is passed on to the customer in the form of lower monthly rentals i.e. the rentals are calculated on the net of VAT price |