Overview

This template should be used where all the chattels and equipment belong to the owner/lessor outright and are not subject to any bill of sale, charge, mortgage, hire purchase agreement or finance lease.

A chattels lease can be used to allow flexibility within a group of companies' activities where there are several different businesses being conducted. For example, a company that does landscaping may have another group company that does earth moving or provides soil, turf, gravel etc. or which sells plants or runs a nursery. Quarantining the major chattels assets such as trucks, earthmovers, tractors etc. may not only have asset protection advantages but also allows a more flexible base for use.

Chattels leases are also often used as part of asset protection planning and you should consult your lawyer and/or accountant to discuss how to use a chattels lease in your particular circumstances and what steps you should put in place.

There may also be important tax implications relating not only to income revenue but to capital gains, and therefore having chattels leases in place may be relevant for your exit/retirement strategy. For example, you may wish to keep the company which owns all the equipment and continue to lease that equipment to the business/es you have sold to give you passive income in your retirement.