Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Lease cost in Co’rp tax
- This topic has 3 replies, 2 voices, and was last updated 2 years ago by Tax Tutor.
- AuthorPosts
- March 1, 2022 at 6:49 am #649534
https://photos.app.goo.gl/aNUp1oJeVyTFiBud9
Sir,
Is it a rule to multiply ×15% of lease cost..
And Sir why is the lease expense on first car ignored.?Can you pls give me reference in textbook or lectures about this topic.
I couldn’t recollect it.March 2, 2022 at 10:24 am #649630I assume you are taking the exam this month as this question appears to be based on FA 2020 – if you look at the FA 2020 Study Notes – Chapter 4, Section 2.2 note (i) at the top of page 23 you will see the answer.
This issue was also discussed in the relevant lectureMarch 2, 2022 at 12:27 pm #649641Okay sir,
I just referredSo effectively we can deduct full car leasing expenses unless the Co2 emission exceed 110g/m.
Herein too we can initially deduct full expenses however simultaneously Lease×15% needs to be added to profit as a charge…Am I correct?
March 4, 2022 at 11:00 am #649801In the adjustment of profit as the note informs – you simply add back 15% of the lease hire charge if the car has the higher level of CO2 emissions
- AuthorPosts
- You must be logged in to reply to this topic.