Lease vs Buy

Leasing is a very cost-effective way to invest in business equipment.
In addition to its many benefits this option competes very well in simple monetary terms.

*Take a look at our lease vs buy example below.

Equipment Cost: £7,500                    Lease Period: 3 Years                    Frequency: Quarterly                Company Tax Rate: 19%


Equipment Cost£7,500

Lease Period3 Years


Company Tax Rate19%

Cash Purchase
Cash Purchase

Total Tax Relief


Year Capital Allowances Tax Relief
1 18% of £7,500 = £1,350 Less 19% = £256.50
2 18% of £6,150 = £1,107 Less 19% = £210.33
3 18% of £5,043 = £907.74 Less 19% = £172.47
Total Tax Relief: £639.30
Cash Purchase
Lease Rental

Total Tax Relief


Year Capital Allowances Tax Relief
1 4 rentals of £768.75 Less 19% – £584.25
2 4 rentals of £768.75 Less 19% – £584.25
3 4 rentals of £768.75 Less 19% – £584.25
Total Tax Relief: £1,752.75

By choosing to lease, the company has saved £1,113.45 in tax relief

*Illustrative and appropriate to current levels of taxation.

Tax Relief

Discover how these tax benefits work in further details.

Why Lease?


When leasing you will get your equipment straight away, rather than when budgets allow.


A lease option is simple and safe – with the fixed cost throughout the lease period there will be no changes or unpredictability to watch out for.


Your business can stay up-to-date with the latest equipment! Leasing provides you with the option of upgrading the equipment at any stage throughout the agreement by simply restructuring the payment schedule.


Offset 100% of the rentals against your tax liability to maximise tax efficiency.

Lease vs Buy

Did you know by choosing to lease, you could receive fantastic tax benefits?

What Else Can I Lease

Learn more about what you can lease. If it is not listed, get in touch & we can help.