| sale & lease/hp back |
chattel mortgage |
Asset is effectively sold to funder who then
leases it back |
Funder lends the money and the loan is
secured by the asset |
| Take asset off balance sheet - helps key ratios |
Asset remains on balance sheet |
| Can have major tax advantages |
No VAT implication as simply raising loan capital
against existing assets |
| Replace the old equipment with new at end of the term |
Interest element of loan is tax deductable |
|
You can continue to claim capital allowances |