HAULIERS throughout the country were in deep conference with their
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accountants this week trying to assess the effects of the Budget, particularly the phased abolition of capital investment tax relief against profits.
Early predictions are that this could cause a mini-boom in buying, to take advantage of the 75 per cent allowance this year.
Leasing rates could come down instead of rising. Rising demand could be outstripped by banks and tax shelters making more leasing funds available.
In the long term, the interest rate difference between leasing and other forms of loan, at present roughly 3 per cent, is almost certain to disappear.
This will greatly reduce the attraction of leasing, although there would probably still be a demand from companies which did not want to put down a deposit or did not want to have the assets on their own balance sheet, or that they could maintain a higher return on capital.