BLM51005 - Right-of-use assets: taxation of right-of-use asset lessees: taxation of short leases
Any right-of-use asset which does not meet the tests to be a long funding lease will be taxed as any other trading expense.바카라 사이트¯ In particular, the guidance on finance lessees ¾±²Ô바카라 사이트¯BLM32200바카라 사이트¯applies equally to right-of-use assets.바카라 사이트¯ Lease rentals are revenue expenditure, regardless of theÌýaccounting treatment, unless there are exceptional circumstances such as those described ¾±²Ô바카라 사이트¯BLM32230.바카라 사이트¯Ìý
Where GAAP has been correctly applied then the accounting recognition in the profit and loss for the right-of-use asset and interest on the lease liability correctly accrues the lease rental costs.바카라 사이트¯ Practically this means that, in most cases,Ìýan amount equivalent to the yearly depreciation of the rental costs and the interest expense recognised on the lease liability is deductible in computing the taxable profits of that period.바카라 사이트¯ There is no change to the basic approach as was originally set out in SP3/91 and subsequently ¾±²Ô바카라 사이트¯BLM32210.바카라 사이트¯ There are exceptions to this based upon basic principles of taxation, such as whether any of the depreciation of the right-of-use asset is capital.바카라 사이트¯Ìý