Back

BVRLA and FLA ask the government to include leasing companies in the Super Deduction initiative

26 April 2021

According to a statement by the Finance & Leasing Association (FLA), it has, jointly with the British Vehicle Rental and Leasing Association (BVRLA), asked the UK government to “amend the Super Deduction initiative to boost investment in plant and machinery by extending it to include leasing and plant hire – two of the most common ways that these assets are acquired by businesses”.

Director General of the FLA Stephen Haddrill said, “The Government’s decision to restrict the scope of the super deduction amounts to a serious missed opportunity to boost investment. The idea that businesses grow and become more productive by buying plant and machinery outright is out-dated. Leasing and hire make far more sense.

“It preserves cash in the business and can avoid having expensive equipment that stands idle. 70% of construction plant and machinery is hired in for specific periods for this reason. Government support needs to be designed around the way business is actually done not around the way HMRC still thinks it is done.”

Chief Executive of the BVRLA Gerry Keaney said, “The Government understands the important role that the vehicle leasing sector plays in delivering the UK’s road transport decarbonisation goals. This makes it all the more disappointing that leased vehicles have been omitted from the eligibility criteria of Super Deduction. This is a huge oversight, and an example of where the Government has failed to align its fiscal and environmental policies.

“An increasing number of individuals and businesses are turning to the leasing sector for cleaner vehicles, but the sector has not been immune to the impact of the Covid pandemic. With Clean Air Zones popping up around the UK, this is the perfect time to incentivise the uptake of low- and zero- emission vehicles and leasing enables businesses to keep their cash to help get them through the recovery period. Making leased vehicles eligible for Super Deduction would provide a boost to many businesses and would be a welcome shot in the arm for fleets.”

We at Marshall Leasing are supportive of the BVRLA and are interested to read the government’s response to the FLA and BVRLA’s joint letters. If you would like to find out more about our car leasing options, please get in touch with us at info@marshall-leasing.co.uk or by calling 01480 414541. 

Back