Asset Finance

What are the Tax Benefits of Leasing?

James Brownlee
4 June 2025

Unlocking Savings: The Tax Benefits of Leasing for Businesses

In business finance, managing expenses and maximising tax benefits are key to success. Leasing assets instead of buying them can offer significant tax advantages. Systems Finance are finance and leasing experts that provide industry-leading financial solutions to help the growth of businesses. Here’s how leasing can help your business save on taxes and improve financial health.

Deductible Lease Payments

When you lease equipment or property, the payments are usually considered operating expenses. This means you can fully deduct them from your taxable income, lowering your tax bill. Unlike buying, where you need to depreciate the asset over time, lease payments give you immediate tax relief in the year they are paid.

Improved Cash Flow

Leasing spreads the cost of expensive items over time, helping preserve your cash flow. The tax deductions from lease payments further reduce your tax liability, freeing up more cash for other business needs. This extra cash can be reinvested to support growth without the pressure of large upfront costs.

Simplified Tax Reporting

Buying assets involves complex depreciation rules and schedules. Leasing is simpler because there’s no need to calculate depreciation. You just deduct the lease payments directly, saving time and reducing the chance of errors in your financial reports.

Off-Balance-Sheet Financing

Operating leases often don’t show up as liabilities on your balance sheet, unlike loans used to buy assets. This makes your financial ratios look better and can make your business more attractive to investors and lenders. Plus, the tax savings from lease payments can further improve your financial health.

Get in Touch

For a confidential discussion and to further understand the tax benefits of leasing, feel free to get in touch today. Simply give us a call on 01789 863 557 or click below to send an enquiry.

Hayden began his career in property sales, where he built a strong foundation in commercial thinking and client relationships. That experience made for a smooth transition into finance, where he’s spent the last five years helping businesses secure the right funding – with a particular focus on solar systems and renewable energy projects. He’s known for his straightforward approach and tailoring solutions to fit each clients specific needs.

“Finance shouldn’t be complicated. It starts with listening, understanding the need, and building something that works.”

Outside of work, Hayden enjoys cryptocurrency investment, playing golf, and a good gym session.

Jack’s been with the business from the early days heading up the Operational team of Systems Finance. His role is to simplify the customer experience. He develops and maintains processes to ensure each customer gets the experience they deserve, quickly and easily.

Whether its dealing with complicated documentation, making sure suppliers are paid on time, or speaking to our customers and suppliers. Systems Finance relies on Jack to make sure that things are moving forward.

One of the Founders and Directors of Systems Finance, Max is proud to work with a range of clients from F1 Teams to small local businesses. Max enjoys working with salespeople to offer finance to their clients and the satisfaction of winning for them and their clients. Max is also a car enthusiast and particularly enjoys arranging finance for cars.

“Our approach is genuinely different to most of the industry and is shown by our long term partnerships we’ve developed. If you’re looking for finance for your business, or want to offer finance to your clients, we’re always available for a chat”.

Before starting Systems Finance, George spent several years working directly with clients across a range of industries, building long-term relationships and helping them navigate finance with clarity and confidence. That experience shaped how we work today: fast, straightforward, and always tailored to the client.

At Systems Finance, George’s focus is on supporting our partners – whether that’s a supplier looking to offer finance to their customers, or a business exploring funding options.

One of the Founders and Directors of Professional Systems Finance Limited, Harry has been in the business finance industry for over 10 years. With strong experience in leading software and technology partner programmes, he is a specialist in making sure that a company gets the right type of financing for their specific requirement.

 “Our goal as Systems Finance is to be the most recognisable, efficient and competent finance partner for your business and sales teams”.

 Outside of work, Harry enjoys rugby, golf and generally keeping active.