   |
The "effective rental" assumes that the vehicle is not being used
solely for business purposes and therefore only 50% of the VAT can be
reclaimed on the lease rental. The "effective rental" includes the
portion of the VAT which cannot be reclaimed on the lease rental. An
example is detailed below:
| Lease Rental (exc. VAT) | £ 434.41 |
| SMR (exc. VAT) | £ 46.85 |
| Total | £ 481.26 |
| Plus 50% VAT on Lease Rental | £ 32.58 |
| Effective Rental | £ 513.84 |