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.
