Hi Sir,
I got a bit confused when going through the allowable and disallowable expenses for income tax and corporation tax section. Am I on the right lines in saying Acquiring a short lease of 50 years is not allowable its only renewing a short lease which is under 50 years which is allowable?
Thanks
Ask the Tutor ACCA TX-UK
Difference between acquiring short lease and renewing
Yes - expenses incurred in renewing a short lease are allowable deductions against trading profits whereas the expenses incurred in acquiring a short lease are capital costs and are not allowable
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