Jonathan Vines Partner and Mon Ullah Assistant Manager in KPMG's International and Finance Tax Group discuss the proposals in respect of leasing
The consultation document (Condoc) on corporation tax reform issued in August 2003 contains radical although not unexpected proposals in respect of leasing. A new statutorily defined category of lease (referred to here as a 'funding' lease) will transfer tax ownership — that is entitlement to capital allowances — to the lessee which is similar to the current position on hire purchase contracts. The definition of funding lease will not be based on the accounting treatment of the transaction and will include some accounting operating leases as well as all finance leases. The rationale for the proposals is that it will not affect the vast majority of...
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Jonathan Vines Partner and Mon Ullah Assistant Manager in KPMG's International and Finance Tax Group discuss the proposals in respect of leasing
The consultation document (Condoc) on corporation tax reform issued in August 2003 contains radical although not unexpected proposals in respect of leasing. A new statutorily defined category of lease (referred to here as a 'funding' lease) will transfer tax ownership — that is entitlement to capital allowances — to the lessee which is similar to the current position on hire purchase contracts. The definition of funding lease will not be based on the accounting treatment of the transaction and will include some accounting operating leases as well as all finance leases. The rationale for the proposals is that it will not affect the vast majority of...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
