20 March 2013
Commenting on the announcement in the Budget that 3 million unincorporated small businesses will have the option to offset their lease rental costs against income tax instead of having to calculate tax capital allowances, Julian Rose, Head of Asset Finance for the Finance & Leasing Association (FLA) said:
“This move is long overdue and one we have campaigned for. It has never made sense for small businesses to have to treat leased equipment as if they owned it and our research shows that many businesses lost out on tax benefits because they either didn’t understand the rules or have the profits to offset the tax allowances against.
“This change will help tens of thousands of businesses invest in new equipment through leasing.”
Notes to Editors
- In 2012 FLA members provided £76.3 billion of new finance to UK businesses and households. £21.4 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.