Lease or buy vans for business

BonandDom

Hi there,

DH runs his own small Ltd company, they currently lease two vans, both under 160g/km for approx £620 (not including VAT) a month.

They are considering purchasing 2 x small vans - under 160 g/km co2 emissions- with a loan (10k - so would be used vans) from the bank - repayments would be approx £300.00 pcm for three years.

I've tried goggling to see which would be the most beneficial for tax purposes but am very confused now.

I think that if they were to purchase aforementioned vans they could claim a 20% allowance on them against thier Corporation tax year. However...I've also read that they could claim 100% of the lease payments.

I have emailed his accountants for clarification but was wondering if anyone on here has any experience?

bengalknights

Any lease payments can be reclaimed as a expense of business same way as leasing a building purchasing would mean you can claim the vat back and some relief on the actual vehicle purchased.

WLM21

I think leasing is the 'way to go'

for your info, have a look at this link http://www.hmrc.gov.uk/helpsheets/hs252.pdf