Commercial Property Lease Query

Kelloggs

Any help would be much appreciated on this one! I have done it before, but it was a while ago and I have forgotten how it works!

I have a client who a lease a property for £15,000 for 8 years. On top of the lease he also pays rent.

How do I expense the lease over the length of the lease for tax purposes, and is it considered depreciation or amortisation. I can't remember for the life of me.

Thanks!!!!

Dean

Hi Kelloggs

There are some quite complex rules regarding leases. I'll point you in the direction of the information first of all:

Here is the general background regarding leasing; and

Here are the tax rules - enjoy!!

Regards

Dean