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deduction for lease premium

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › deduction for lease premium

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by iloveaccountancy.
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  • November 22, 2017 at 10:22 am #417364
    iloveaccountancy
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    • Topics: 117
    • Replies: 110
    • ☆☆☆

    Hi

    I have become confused about the deduction for lease premiums, in corporation tax liability.

    In a situation where a business has brought a lease tenancy:

    I understand that it is: the premium-(deduction of Premium(Lease-1)*2%).

    However the result of the above calculation is called “assessable as property business income on landlord”.

    Who does the word landlord refer to here? the leasing business?

    November 22, 2017 at 3:03 pm #417420
    Tax Tutor
    Member
    • Topics: 2
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    • ☆☆☆☆☆

    The lessor

    November 22, 2017 at 4:06 pm #417443
    iloveaccountancy
    Member
    • Topics: 117
    • Replies: 110
    • ☆☆☆

    Thank you.

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