corp tax comp

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello everyone, <BR><BR>just wonder if anyone would know the treatment of finance lease payments, interest treatment, capital and also depreciation charges in the corporation tax comp. <BR><BR>All has been put throught the system. Interest charges are allowable, I understand, depreciation charges on the building are like usually no no and therefore need to be added to profit figure. But how is repayment of capital treated? The building is included at valuation. <BR><BR>it may sound a bit confusing, but woudl be thankful for any info and ideas<BR>Dia

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    corp tax comp

    there was a concession a few years ago that allowed you to leave the interest and depreciation charge in as allowable. The option is to reverse them out and put in the actual rent paid. The revenue are more accepting of GAAP these days so I would leave the interest and depn in. I would also make it very clear what had been done to preclude any enquiry.

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