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FLA comments on Budget implications for small businesses

Ref: 155

Date: Fri 22/Mar/2013, 12:18

Julian Rose, head of asset finance for the Finance & Leasing Association, has reacted to the announcement in the Budget that three million unincorporated small businesses will have the option to offset their lease rental costs against income tax, instead of having to calculate tax capital allowances.

He 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 did not have the profits to offset the tax allowances against.

“This change will help tens of thousands of businesses invest in new equipment through leasing.”

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