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Hire Purchase

Braemar Finance Stand: B317

A Hire Purchase agreement allows outright ownership of the asset at the end of the agreement term.

In addition the asset may potentially be claimed against your taxable profit, under your Annual Investment Allowance, which is an advantageous tax benefit that should be explored.

Benefits of Hire Purchase include:

  • Expenditure may be allowable against taxable profit within your Annual Investment Allowance in the year of purchase to the sum of £200,000 to £1,000,000
  • Easier cash flow budgeting as repayments are fixed
  • Capital preservation - existing funds can be used elsewhere
  • Interest charges can be offset against profits for taxation
  • Outright ownership on completion of the agreement
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