finance leasing

finance leasing
In a finance lease the rental payments are calculated to reflect the cost of purchase of equipment and a financing/interest charge spread over the period of the lease. The lessor is the legal owner of the equipment and the lessee has possession and use of it. The allocation of capital allowances will depend on the structure of the lease but may be claimed by the lessor and hence reflected in lower rentals.

Easyform Glossary of Law Terms. — UK law terms.


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