Borrow money tax efficiently
Tax relief on renting or leasing an asset
Leasing an asset is like renting it over a period in return for fixed rental payments. Many UK businesses take advantage of leasing.
Renting or leasing assets can be tax efficient - this can reduce your overall tax bill, as the cost is deductible as a business expense. This is a factor in determining whether you should rent or lease an asset, rather than buy.
Other points to consider when acquiring assets through renting or leasing include:
- You do not legally own the asset. It is returned at the end of the rental, hire or lease period.
- You do not bear the risk that, when you have finished with the asset, its value has decreased below the amount you paid for it.
- The asset can often be replaced by a newer one, by upgrading at little or no extra cost.
- You do not have to find a large cash deposit.
See the page in this guide: examples of tax relief when acquiring an asset.
Subjects covered in this guide
- Tax relief on renting or leasing an asset
- Tax relief on borrowing to purchase an asset
- Examples of tax relief when acquiring an asset
- Borrow money for capital investment from pension schemes
- Claim loan interest against tax
