Great news for small business owners that operate as a sole trader. The Budget allows for 3 million unincorporated small businesses to have the option to offset their lease rental costs against income tax instead of having to calculate tax capital allowances.
Julian Rose, Head of Asset Finance for the Finance & Leasing Association (FLA) said:
“This move is long overdue and one we have campaigned for. It has never made sense for small businesses to have to treat leased equipment as if they owned it and our research shows that many businesses lost out on tax benefits because they either didn’t understand the rules or have the profits to offset the tax allowances against.
“This change will help tens of thousands of businesses invest in new equipment through leasing.”