BIM45365 - Specific deductions: hire purchase: petrol pumps, tanks etc

Petrol pumps, tanks and similar equipment are in some cases supplied by petrol companies to retailers and commercial consumers on a deferred payment basis.

Agreements that provide for ownership to be transferred on completion of the payments are hire purchase agreements within BIM45351.

If payment is made by means of an extra charge per gallon of petrol or oil, any capital element in the payments remains disallowable.

In some cases where payment is made on this basis, ownership of the equipment passes to the purchaser on signature of the agreement. In these cases the payments are wholly capital expenditure, see BIM45351.