The BVRLA and the Finance & Leasing Association have joined forces to lobby the Government on the current limitations of the Super Deduction, which excludes leasing from the tax relief.
In letters to Government Ministers, both trade associations have welcomed the introduction of the Super Deduction but highlight that it is a mistake to overlook leasing. Both industry bodies make clear that including leasing would benefit a much broader range of businesses and would help to stimulate growth and boost recovery across all sectors.
At a time when some businesses can ill-afford to make large capital expenditures, leasing or short-term hire are particularly attractive routes to acquiring newer vehicles. For others, these options make good business sense because the assets will only be used for limited periods or need to be updated regularly.
The FLA and BVRLA’s joint briefing paper on Super Deduction provides further details.
In a joint press release, BVRLA Chief Executive Gerry Keaney commented “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.”
