Hello sir.
As i understood, the premium allowed for deduction from trading profits is deducted from trading profits of the tenant not the landlord right? and its per annum
Ask the Tutor ACCA TX-UK
premium
The landlord is assessed on the income element of the premium RECEIVED and the tenant who is the trader is allowed an annual trading profit deduction in relation to the premium PAID. The annual amount allowable to the trader however is based on the assessable income element of the premium received by the landlord divided by the number of years of the lease.
so they are both the same figures right? amount assessed on income statement of landlord and allowable deduction from tenants income?
The allowable deduction is based on the same figure as the the landlord is being assessed on BUT it is spread over the number of years of the lease to give the ANNUAL trading profit deduction
Sign in to reply to this topic.