A limited company has bought some Wimbledon Debentures on the open market. and thus they cost more than their nominal value. These last for five years at the end of which the company will be entitled to buy debentures for the next five year at the nominal value.
If at some stage they do not want to continue to hold them they will be able to sell them on the open market.
VAT was charged on the purchase (I am not quite sure why) and it has been reclaimed. Is this correct?
The debentures will be written off over their remaining life. Presumably this is not allowable. And presumably when (if) the debentures are sold the base cost will be the nominal cost of those debentures that are sold rather than the original cost of the original debentures purchased.
The debentures entitle the company to a number of seats at the championship matches. These are used by the directors and staff and are given to customers etc (thus they are an entertaining cost).
What amounts should be put on the directors and staff P11Ds?
Any thoughts and experiences will be welcome!
- Xmas party 152 2
- What is the best blog for practitioners to follow? 382 8
- Fixed asset registers 318 10
- Tech Champion of the Year 268 6
- Just because it's Friday 328 6
- Playstation 4 - Allowable expense or not? 3,369 66
- Inheritance Tax - Simple Question 169 4
- Non-resident employer & employee 110 4
- Capital Allowances 169 4
- equipment rental 222 10
- Acquisition by company 139 5
- Non sequitur 546 7
- Client using boyfriend's personal account 1,515 23
- R&D on products not sold 101 3
- Distance between Postcodes in Excel 948 13
- Under Cash Accounting rules how do I account for a credit note issued outside the Corp Tax period? 202 4
- Quirky thread of the year: Community Awards 652 9
- Transfer of land to family members 111 2
- The complete uselessness of the British banking system 601 11
- The process of issuing dividend? 231 6
- Desperately seeking Susan, Sam or anyone with any other name 1,370
- Darwinpay Partnership Assessment 437
- Alphabet shares 243
- Agent fees to sell business 231
- ACCA continuity of practice arrangement needed 230
- Charge out rates in London 185
- How to reclaim VAT for a non-EC UK visitor 170
- which entity 151
- UK tax regime 'attractive' to investors, says KPMG 142
- confusion about 141