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Difference between acquiring short lease and renewing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Difference between acquiring short lease and renewing

Viewing 2 posts - 1 through 2 (of 2 total)
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  • January 7, 2021 at 1:34 pm #601818
    Burningdesire
    Member
    • Topics: 14
    • Replies: 14
    • ☆

    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

    January 8, 2021 at 9:53 am #602586
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    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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