Lease Cars- disallowable payments

Options
Ampsie
Ampsie Registered Posts: 145 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Hi,

Can anyone tell me the rules for capital allowances on lease cars?It says in my book if the card has an emission level over 160g/km then 15% of the lease payment is disallowed.

But looking at question 2.1 on BTC June 2009 there is a weird calculation they have done and i can't work it out.

Am i being dumb - is it because the rules have changed since last year?

If anyone can shed a light for me that would be great!

Ampsie
:-)

Comments

  • timgriff
    timgriff Registered Posts: 55 Regular contributor ⭐
    Options
    Hi Ampsie, I have a kaplan revision pack and for each past paper the model answers use the 2009/10 tax year, and the answer is simply: 15% x £2200 = £330 added back.

    I checked if it was the same on the AAT website however, and like you say the answer is a bit weird - presumably this is what was required at the time the exam was set?
  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    Options
    Thank you for posting this, im doing BTC but wasnt aware of this rule. Back to the books me thinks. Good luck for tuesday btw.
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    Options
    timgriff wrote: »
    Hi Ampsie, I have a kaplan revision pack and for each past paper the model answers use the 2009/10 tax year, and the answer is simply: 15% x £2200 = £330 added back.

    I checked if it was the same on the AAT website however, and like you say the answer is a bit weird - presumably this is what was required at the time the exam was set?

    This is the same way weve been tought in college :)
  • qwerty
    qwerty Registered Posts: 82 Regular contributor ⭐
    Options
    The rules changed in April 2009 to 15% disallowance for cars with CO2 emissions exceeding 165g/km. This is to penalise drivers of cars which cause more damage to the environment.

    Before this, the restriction was made if the car had a retail price when new of more than £12,000. It didn't matter if the car was bad for the environment or not.

    FYI, the old restriction was (£12,000 + P) / 2P X R, where P = retail price when new and R = rental costs. Thankfully, the new rules are easier!
  • Ampsie
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
    Options
    Thanks for the replies - i'm glad the rule has changed and i hadn't completely lost the plot!!

    Good luck to all - just think - this time next week BTC will be done and only PTC to go!

    AMpsie
    :-)
  • Lou1234
    Lou1234 Registered Posts: 210 Dedicated contributor 🦉
    Options
    Thank you for this.

    I'm covering the reception phone for an hour and thought I would look at a past paper while not at my desk.

    This completely confused me when I was looking at the answer paper! Did a search for the word 'lease' and this thread came up! I also thought I had lost the plot as it wasn't ringing any bells for me!

Categories

Privacy Policy