Get the most out of the asset, then dispose of it when you’re ready

Finance leases typically enjoy a low initial capital outlay and the VAT, which is paid on each instalment, is therefore spread over the period of the lease. If a qualifying asset is used for business purposes, and you are VAT registered (special rules apply), you may be able to recover some or all of the VAT applied to the lease rentals.

The availability and value of tax relief will depend on your individual circumstances; you can , without obligation, request a copy of the contract terms for details of how the facility you are considering would be treated for your business, so that you can discuss this with your accountant or tax advisor.

The goods can continue to be used after the primary period, in exchange for a nominal continuing-period instalment. Although ownership never passes to you, when the goods are no longer required, a high percentage of the ultimate net sale proceeds is refunded as a rebate of the instalments.

 Benefits of Finance Lease:

• Tax efficient
• Accurate budgeting
• On the sale of the asset, a high percentage of the sale proceeds is refunded
• Spreads the impact of VAT, which is collected on each rental as it falls due
• Low initial capital outlay – this can be as low as one monthly instalment per year of the lease

What happens at the end:

• Extend your lease agreement. You may continue the lease and pay a nominal instalment, as notified by us, until you wish to terminate the agreement.
  
  
• You may introduce us to a potential buyer for the goods (e.g the orginial supplying dealer, the JCB Finance Machinery Sales Centre or an agreeable unconnected third party). If the goods are sold at the curret market value, subject to approval, we shall pay you an amount equal to a percentrage of the sale price (as indicated on your agreement). Terms apply; please see the agreement for full terms and conditions.

• Just return the goods to JCB Finance. Return conditions apply.

How it compares: