🚗 Should You Lease a Range Rover Sport Hybrid Through Your Limited Company?

When it comes to high-value vehicles like the Range Rover Sport Hybrid, directors often ask: “Should I lease through my limited company or personally?”

With tax incentives for low-emission vehicles, the answer might surprise you.

Let’s break it down with real numbers.

📊 The Scenario

• Vehicle: Range Rover Sport Hybrid
• List Price (P11D): £104,000
• BIK Rate (2025/26): 6%
• Taxpayer Status: 40% higher-rate
• Monthly Lease: £1,100 + VAT = £1,320/month
• Lease Term: 3 years (36 months)
• Company is VAT-registered (50% VAT recovery on lease)

Option 1: Lease via Limited Company

💼 1. Benefit-in-Kind (BIK) Tax

• BIK value: £104,000 × 6% = £6,240/year
• Director's personal tax (40%): £6,240 × 40% = £2,496/year
• Over 3 years: £7,488 total

💸 2. Lease Cost and Tax Relief

• Lease incl. VAT: £1,320/month × 36 = £47,520 total
• VAT element: £220/month × 36 = £7,920
• VAT recoverable (50%): £3,960
• Net lease cost to company: £47,520 – £3,960 = £43,560
• Corporation tax relief (25%): 25% × £43,560 = £10,890 saved

✅ Effective Company Cost

Lease (net of VAT): £43,560

– Corporation Tax Saved: (£10,890)

= Net Company Outlay: £32,670

+ Director BIK Tax: £7,488

= Total Effective Cost: £40,158

Option 2: Personal Lease

• Lease (incl. VAT): £1,320/month = £15,840/year
• Paid from post-tax income
• As a 40% taxpayer, to have £15,840 net, you need ~£26,400 gross/year
• Over 3 years: £26,400 × 3 = £79,200 gross income required

❌ Total Effective Cost: £79,200

🏁 The Verdict

Leasing through your limited company could save you over £39,000 compared to a personal lease.That’s the power of tax planning with low-emission vehicles and Benefit-in-Kind efficiency.

👇 Takeaway for Directors

If you're a higher-rate taxpayer considering a premium hybrid or EV, it’s worth running the numbers. Leasing through your limited company, especially while BIK rates remain low, can be a smart and highly tax-efficient choice. BIK rates are on the increase but they are still very competitive.

N.B. Importantly, these numbers are for illustration only. Please contact us for an accurate quotation. Please consult an accountant to check the impact your you or your business regarding taxation.