| Lease | Operating lease |
Hire purchase |
Contract hire |
|
|---|---|---|---|---|
| Ultimate ownership | No | No | Yes * | No |
| Writing down allowances claimable | No | No | Yes ** | No |
| Repayments tax deductible | Yes | Yes | Interest only | Yes |
| Off Balance sheet | No | Yes *** | No | No |
| VAT on payments reclaimable | Yes | Yes | N/A | Yes |
| VAT on cost of asset reclaimable | No | No | Yes ** | No |
| Servicing / Maintenance included | Possible | No | No | Possible |
| Fixed term agreement | Yes | Yes | Yes | Yes |
| Fixed rate agreement | Yes | Yes | Yes | Yes |
- * On payment of final rental
- ** Special rules apply to company cars
- *** Classification as off balance sheet funding is subject to auditor's approval
Lending Warning
If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating.
