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clokelly
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Hello
I am preparing an income tax report and I’m currently at the adjustment stage.
one of my notes states:
Depreciation includes £1600 on an item of plant and machinery acquired under a finance lease. The interest charge in the statement of profit or loss is £1780. Depreciation is charged at a rate of 10% per annum on a straight line basis and a full years depreciation is charged in the year of acquisition.Im finding it difficult to find information on a P&M finance lease, am I correct in thinking the 1600 is deducted from the remaining depreciation amount is added back? and do I put 10% of the interest charge in the deductions?
thanks for your help
Tax Tutor
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You will not find any reference to leases in your F6 material as it’s not in the syllabus so no need to work exercises that involve them – keep your studies to material prepared specifically for the F6 exam!
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