Could someone please advise how the disallowance operates when a car is leased by a sole trader, and there is personal use - is the private use element adjusted for before or after applying the 15% disallowance to the rental charges?
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Lease addback
Someone may tell me different, but if the lease costs were say £1000 and the private use of the vehicle 50%, I would calculate as follows
£1000 x 15% =£150 (addback)
Allowable lease costs £850 x 50% = £425 (addback)
This is on the assumption that the co2's were high enough for the 15% to apply and it was a lease entered into post 01/04/09
It doesn't matter
Arithmetically, it's irrelevant. For example, assume the PU is 25% (i.e. 75% allowable):
100 x 85% x75% is the same as 100 x 75% x 85%