Tax Tip Week 42 - Leasing
Leasing is a way of raising finance (as opposed to traditional renting) to purchase outright or purchase the use of an asset.
This article excludes leases over 5 years and car leases where tax treatment differs.
The Lease period may vary from 1 to 5 years depending on the life of the asset.
The Lessor is the business providing the asset.
The Lessee is the business using the asset.
There are two types of Leases available, both of which are accounted for differently.
Please refer to our article Leasing in our knowledgebase for full details.