The UK’s Finance & Leasing Association (FLA) is calling for
government support for SMEs that invest in capital equipment
through leasing.
In its pre-Budget report submission, the FLA is calling for the
same capital allowances that apply to asset purchase to apply to
leasing. Many smaller companies that choose to lease do not have
taxable profits; so if the lessor was allowed to claim the capital
allowance on their behalf, the SME could reap the benefit of lower
rentals, the FLA said.
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“Red tape around capital allowances can make leasing less
accessible and more expensive,” the association said.
Julian Rose, head of asset finance at the FLA, added:
“The same tax incentives should be available to leasing as
purchasing. This is one way that the government could significantly
boost business investment and help protect and create jobs.”
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