Company lease premiums

Company lease premiums

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Hi, I know years back there used to be a calculation done whereby part of a lease premium was allowed as a CT deduction depending on the length of the lease relative to 50 years etc. Can anyone tell me if this still specifically exists for a company which has recently paid a premium and if so which Act and section number this now falls under? Thanks.

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By EASy
02nd Jul 2013 13:37

Sorry, wrong thread

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By David Massey
03rd Jul 2013 14:43

Part 3, Chapter 5, CTA2009

Andrew,

The legislation you're after begins at Section 61, Corporation Tax ACT 2009 (assuming the company is using the property for the purposes of its trade.)

If it is sub-letting the property then the equivalent rules for property businesses begin at Section 231 of the same Act.

(I'm just setting an exam question on this for my undergraduate students. Luckily for them they are not required to refer to the legislation, but we do let them use Tax Tables. Both Bloomsbury's and Hardman's (CCH) are very good at including the statutory references for this sort of thing. I'm sure other publishers will do this as well but I don't have their books to hand.

 

David

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