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saqlainrattansi
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How is a motor car lease which is used for a full year treated if it has CO2 emissions of 145?
According to the June 2015 marking scheme- https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f6/exampapers/uk/F6UK-2015-jun-a.pdfIt has been multiplied by 15% and that has been added back to the profit. I.E the cost of lease 4400 has been deducted and then (15% of 4400= 660) has been added back. Why is this? Where does 15% come from? Is it a fixed number?
Also, Is there different treatment for cars with lower CO2 usage?saqlainrattansi
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Also, are these leases time apportioned? I.e if I took out a lease on 1st Oct what would be the treatment?
Tax Tutor
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Look again at the OT course notes – this time chapter 4 section 2.2 note (i) – the 15% add back is a rule for cars with emissions above 130g/km.
There is no time apportionment as the lease charge will be for the period of hire whether that is 12 months or any lesser period
saqlainrattansi
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