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Good Morning,
please Kindly assist me with the relevat cashflow on determining the present value on a lease option (finance and operating)
Reason for the question: some friend say i should treat capital allowance tax relief and lease rental tax savings as relevant cashflows for a finance lease, but use only lease rental tax savings for an operating lease. please is this position correct?
For Paper F9, only the lease payments are tax allowable.
(And in all questions in F9 involving tax you are told the tax rules to use).
I do suggest that you watch my free lectures on lease and buy.
(Our lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well)
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