Most VAT Efficient

Finance Lease Vans

The most tax-efficient way to lease a van. 100% VAT reclaimable on all rentals, the lowest monthly payments, and flexible options when the contract ends.

Get a Finance Lease Quote 01656 502099

Contract Length

24 - 48 months

Balloon Payment

20 - 40% of value

Mileage

Agreed at start

VAT Recovery

100%

How It Works

Finance Lease Explained

During the Lease

You make fixed monthly rental payments over an agreed term — typically 24 to 48 months. Because there is a balloon payment deferred to the end, your monthly instalments are lower than contract hire or hire purchase. All rentals are fully tax deductible, and you can reclaim 100% of the VAT.

At the End

When the lease ends, you have three flexible options. You can arrange for the van to be sold by a third-party agent — with the sale proceeds (minus the balloon) returned to you. You can re-finance the balloon payment and continue driving. Or you can keep renting at a significantly reduced "peppercorn" rate.

Tax Benefits

Finance lease is the most VAT-efficient option for VAT-registered businesses. You reclaim 100% of VAT on all rentals, and the full rental amount is deductible against taxable profits. The asset typically sits off your balance sheet, keeping your accounts cleaner.

Benefits

Why Choose Finance Lease?

100% VAT Reclaimable

Reclaim all the VAT on every rental payment — the most tax-efficient leasing option available.

Lowest Monthly Payments

The balloon structure means your monthly outgoings are lower than contract hire or HP.

Flexible End-of-Term

Sell via an agent, re-finance the balloon, or keep renting at a peppercorn rate. Your choice.

Fully Tax Deductible

All monthly rentals can be offset against your taxable profits. Great for limited companies.

Off Balance Sheet

Keeps your accounts cleaner and your debt-to-equity ratio looking healthier.

Residual Value Benefit

If the van is sold for more than the balloon, the surplus comes back to you via the agent.

FAQ

Finance Lease Questions

What is a finance lease?

A finance lease is a form of van leasing where you make fixed monthly payments with a balloon payment at the end. You never technically own the van, but you can arrange for it to be sold, re-finance the balloon, or continue renting at a reduced peppercorn rate.

Why is finance lease the most VAT-efficient?

With a finance lease, you can reclaim 100% of the VAT on all monthly rental payments, making it the most tax-efficient leasing option for VAT-registered businesses.

What happens at the end of a finance lease?

You have three options: arrange for the van to be sold by a third-party agent (with sale proceeds returned to you), re-finance the balloon payment, or continue renting at a reduced peppercorn rate.

What is a peppercorn rental?

A peppercorn rental is a significantly reduced monthly payment you can continue paying after the primary lease period ends, allowing you to keep using the van at minimal cost.

Compare Finance Options

Contract Hire

Ready to Get a Finance Lease Quote?

The most VAT-efficient way to lease a van. Tell us what you need and we'll find you the best deal.

Get Your Quote Call 01656 502099

Sion Jones Commercials Ltd (Company No. 16680310) is not FCA registered and does not provide financial services. All finance enquiries are introduced to an FCA-authorised finance broker. Sion Jones Commercials Ltd holds no liability for any finance agreements entered into between the customer and the lender. Finance is subject to status. Terms and conditions apply. Initial Disclosure