Hire Purchase
A straight forward repayment facility where you ultimately own the asset. Repayments can be structured in a flexible way using initial payments and/or a ‘balloon’ (final lump sum).
Key features and benefits
- With ownership you have total control over the asset.
- Ownership normally carries the potential for claiming writing down allowances and/or capital grants, including any enhanced first year allowances.
- VAT on the cost of the asset is normally reclaimable.
- The interest element of repayments can normally qualify for tax relief.
- The asset appears on your balance sheet.
Typical assets: virtually all types of equipment, vehicles, plant and machinery.
Frequently Asked Questions:
What tax allowances can I claim?
You can normally claim writing down allowances on the cash price of the asset as shown in the agreement. The interest element of your repayments will usually qualify for tax relief.
Can I reclaim VAT charged on the payments?
Providing you are registered for VAT, you can normally claim back the VAT payable on the purchase price of the asset.
