How leasing helps
In his recent Summer Budget, the Chancellor outlined a number of changes which will have an impact on the business community over coming years.
Perhaps one which might require immediate attention was the proposal to reduce the level of annual investment allowance from £500,000 to £200,000 from January 2016. The annual investment allowance provides an accelerated tax break for any business investing in capital equipment by enabling the full cost of any qualifying asset to be offset against tax in the year of acquisition.
For businesses making healthy profits in their current financial year and facing the resultant high tax liability, there might therefore be very good reasons to bring forward investment decisions. However profit and cash flow are different things and any assets acquired will be in the business for a number of years, so a perfect solution might be to take advantage of the high level of annual investment allowance available for the remainder of this year, whilst spreading the cost of acquiring the asset over future years.
BNP Paribas Leasing Solutions will be pleased to discuss how their Hire Purchase agreements can provide the solution, but businesses need to act fast as the tax rules dictate that any qualifying asset must be delivered and fully operational by the end of the year in which annual investment allowances are claimed.
Andy is an experienced sales and finance professional with over 25 years’ experience in sales aid leasing. Andy is widely recognised as an expert in business finance and has in recent years focused his attention on developing partner sales teams develop an understanding of how businesses secure project financing. His training programme – Finance Unlocked – is a highly rated customisable course and is offered at no cost to partners.
If you’re interested in helping your sales team overcome finance-related hurdles during the selling cycle, please get in touch with Andy on
07966 114 243 or email here.