Join us at Optrafair 2019
Snowbird Finance is delighted to be exhibiting at Optrafair from the 30th March - 1st April 2019, NEC Birmingham
For four decades the entire community of practitioners, suppliers and educators have chosen...
Treatment Finance is great, in the first three months of using it, I had my best month in 27 years
Dr. George Stramotas
Sign up to our newsletter to receive relevant updates, top tips and industry specific news
Lease purchase (also known as Hire Purchase) offers taxation and ownership benefits for medical professionals purchasing new practice equipment, allowing you to own the equipment outright once all the payments have been made (subject to a nominal title transfer fee). This also means that the equipment will show on the balance sheet as a fixed asset.
This is a popular option for managing cashflow, particularly for newly established or expanding dental practices, as there is no significant outlay, leaving you to save working capital for other projects.
Lease purchase schemes are usually for periods of up to 5 years with fixed payments made monthly in advance, so you know exactly how much you need to pay each month, regardless of the prevailing base rate.
The main tax benefit of this type of finance solution is that your purchase would qualify for the Annual Investment Allowance (AIA), which offers tax relief at 100% on qualifying expenditure in the first year of purchase. The maximum you can deduct from your taxable profits was increased to £500,000 in the 2014 Budget, until 31 December 2015. *
Click here to get in touch to discuss your next finance agreement.
*You have sole responsibility for your own tax and legal affairs. We recommend that you obtain your own independent tax and legal advice tailored to your individual circumstances. Snowbird Finance does not provide tax or legal advice.