Leases

This section is designed to analyse the various tax relevant information related to leases.

The Short lease premiums sheet calculates the amount of deemed rental income in each period of account. You will need to enter details of the lease, including the premium paid. If there is an amount of deduction remaining, or the lease has not been disposed of, then the row will carry forward to the following period. The Business dropdown at the end of the main table appears if you have more than one Business (trade or property) and lets you allocate the individual lease to the correct business. Once you insert the sheet it automatically inserts the column for Short lease premiums in the Additions analysis sheet. The total of this column checks with the total premiums paid for leases acquired within the period of account.

On this sheet you can enter information about the value of leased assets. The total amount of

Capitalised leased asset

additions is used in the reconciliation of total capitalised expenditure in the Fixed assets additions analysis sheet. Amounts in the

Fixed assets disposal analysis

sheet that are set to

Capitalised leased assets

in the capital allowance type dropdown must agree with the total net book value of disposals in the Capitalised leased assets sheet. The

Business

dropdown at the end of the main table appears if you have more than one business and lets you allocate the individual assets to the correct business.

Where you have identified the amounts you want to be treated as long funding operating lease payments within the

Income statement

, you should analyse these from the

Expense and income analysis

or

Management expense analysis

sheet in which they arose. Select

Long funding operating lease payments

from the

Analysed as

dropdown menu and develop the Long funding operating leases - lessee adjustment sheet from the

Insert sheet

menu. In the sheet you can add rows for each of the leases you would like to analyse. The

Business

dropdown at the end of the main table appears if you have more than one business and lets you allocate the individual leases to the correct business.

Where you have identified the amounts you want to be treated as long funding operating lease rental income within the

Income statement

, you should analyse these from the

Expense and income analysis

or

Management expense analysis

sheet in which they arose. Select

Long funding operating lease income

from the

Analysed as

dropdown menu on the row and develop the

Long funding operating leases - lessor adjustment sheet

from the

Insert sheet

menu. In the sheet you can add rows for each of the lease payments you would like to analyse. The Business dropdown at the end of the main table appears if you have more than one business and lets you allocate the individual leases to the correct business.

Also, from the

Long funding operating leases - lessor adjustment

sheet you can develop an

Enhancement expenditure analysis

sheet. You can develop one

Enhancement expenditure

sheet for each row in the

Long funding operating leases - lessor adjustment

sheet. Values inserted on the

Enhancement expenditure

link back to the Long funding operating leases - lessor adjustment sheet.

The

Special leasing

is a summary sheet collating the income after non qualifying allowances have been deducted. Any allowances on qualifying assets will be added together and deducted from special leasing income before being transferred to the

Excess capital allowances

sheet which handles the various offsets. The overall income or loss will be transferred to the

Miscellaneous income

sheet to be taxed or relieved accordingly. This and the supporting sheets will have columns inserted for each accounting period and will not attempt to apportion income or expenses. You are able to identify the amounts as special leasing in the P&L and the total leasing income less expenses entered into the special leasing asset sheets will be validated against this. Each asset will have a separate sheet where the income and expenses can be entered, this will be developed from the special leasing summary. From here you can enter the income and expenses for the asset and develop capital allowance sheets. Allowances used for qualifying activities will be totaled on the summary sheet and offset against total special leasing income in the first instance and then against other income. Where there is a non-qualifying activity the allowances can only be used against the income from that asset. The days used for any non-qualifying activity can be entered (default will be to assume it is qualifying for the whole period). Any non-qualifying allowances will be deducted and carried forward on this sheet for use in a later period against the future income of that asset. On the summary sheet all assets will be totaled, and deductions claimed against it. The net profit or loss is transferred to the

Miscellaneous income

sheet where the amounts are taxed or relieved. The

Excess capital allowances sheet

will support the current period offset, carry back, group relief and carry forward claims. This is summarised on the

Loss summary

sheet.

The

Finance lease debtor

sheet tracks movements in assets leased out on finance leases. You can manually enter values here. The

Additions

and

Disposals

rows reconcile with the

Finance lease additions

and

Finance lease disposals

sheets. The

Reconciliation

section reconciles the finance income credited to the Income Statement. If there is more than one business, you can allocate the amounts between them underneath the main table.

The Finance lease additions lets you enter additions within the period and deals with the restriction under CAA 2001 s220(1). You can enter each addition and specify which type of capital allowance applies on a row by row basis. The restricted amounts are rolled forward and can be utilised in the following period. The

Finance lease disposals

sheetlets you enter disposals within the period. In this sheet you also are able to determine the capital allowance type. In both the

Finance lease additions

and

Finance lease disposals

sheets, the

Business

dropdown at the end of the main table appears if you have more than one business and lets you allocate individual assets to the correct business.