Finance Lease
Under a finance lease, the finance company purchases and owns the asset throughout the term of the lease and hires the goods or equipment to the customer over an agreed period (primary period).
At the end of the lease the customer can either return the goods to the finance company and upgrade to new equipment on a new lease, or there is usually an option to continue leasing the goods after the primary period at an agreed annual payment.
All rental payments are subject to VAT
