Equipment Leasing

This article describes the UK tax treatment of equipment leasing and focuses, in particular, on tax planning issues.

It covers both traditional finance leasing and the fundamental changes to the tax regime introduced in 2006.

Particular topics addressed include:

• financial implications of equipment leasing
• the major reforms introduced by Finance Act 2006
• what remains of the traditional system of equipment leasing
• availability and utilisation of tax reliefs
• cross-border aspects
• lease documentation
• the future of equipment leasing

This article is based on an update of a chapter submitted for publication in the 2009/10 edition of 'Tolley's Tax Planning'.

Richard Carson (partner); Steve Edge (partner)