| Don’t use a commercial hire purchase agreement (CHP) as a novated lease agreement |
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Some advisers are suggesting it is advantageous to try to novate a
hire purchase agreement for a motor vehicle, to an employer. There is
no public tax ruling to cover this arrangement and it would be very
difficult to achieve a beneficial result.
If you want to novate an agreement is always safest to base it on a
finance lease and not hire purchase, or any other chattel finance
instrument.
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