Share this content

Lease v Contract Hire

Lease v Contract Hire

Didn't find your answer?

It is well known that leasing of expensive cars is restricted where the cost would be in excess of £12k. But does this also apply to contract hire vehicles? What if the maintenance element and the car element can be separated? Can it only apply then to the car element if applicable at all?

Any statutory references would be appreciated too.

Kevin Salter

Replies (2)

Please login or register to join the discussion.

avatar
By Anonymous
23rd Jun 2005 11:42

It applies to lease and hire cars
It applies to leased cars ( section 578 A ICTA) and to hired cars ( i.e. cars being rented) but not to cars being purchased under an H.P. agreement. That is my understanding -- but I am open to correction.

Thanks (0)
avatar
By AnonymousUser
24th Jun 2005 08:11

See Inspectors Manual
See the manual BIM47717 - link attached http://www.hmrc.gov.uk/manuals/bimmanual/BIM47717.htm for a summary. Note that the cost to the leasing company can be used if known. Maintenace if separate is excluded from calculation.

Thanks (0)
Share this content