lease purchase

this type of leasing is more commonly known as 'hire purchase' in the UK.It is essentially a finance lease with a nominal purchase option built into the agreement that can , and normally always is , exercised at the end of the lease period . under UK tax rules , where such an option to purchase exists , it is the lessee, not the lessor , who can claim any available capital Allowances .SO For Tax Purposes The Treatment OF The Asset IS The same as if it was acquired by simple loan and the accounting treatment regards the asset to all intents and purposes as being owned by the lessee,with the asset appearing on the lessee is balance sheet.