Some finance companies will provide maintained finance lease contracts, of which the lessee will be able to reclaim 100% of the VAT.
Similar to contract hire, a finance lease allows the lessee to hire a vehicle for a fixed monthly fee. One of the main differences is that the risks and rewards of ownership of the vehicle are transferred to the lessee.
A finance leased vehicle will show on the lessee's balance sheet; outstanding rentals will be represented as a liability. Generally, a finance lease will follow one of two standard formats – the residual value lease or the fully amortised …
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