I am currently looking at leasing a piece of equipment which costs approximately £20000 including VAT. I am not VAT registered, but I am a Ltd Company. There is an option to buy at the end. The period will be five years. There are 2 options, they will fully service and maintain or that will fall to me. Now my question is, are lease payments fully tax deductible and if so/not how do I treat them in the accounts? And on My CT return.
Many thanks for your help.