This topic covered Finance Leases. 

  • A Finance Lease is a tri-partite transaction with the rentals covering the full cost of the vehicle during the primary period of the lease.
  • The rentals cover the capital cost of the vehicle excluding VAT, plus the interest that is charged by the lessor. Finance Lease payments  do attract VAT. The vehicle associated with the agreement appears on the balance Sheet of both the lessor and the lessee.
  • Finance Lease agreements can be regulated or unregulated depending on the nature of the customer and the total amount of the rentals.