Default 100% Tax Relief on IT Purchases - 2013

[Nixon Williams]

Hi, Sorry to resurrect an old thread but feel its a relevant question and people could benefit from all this information in one thread.

Does the above apply to IT leasing also? the lease company I'm dealing with are telling me the opposite ie.

If I have taxable profits of 50,000, and a tax bill of 5,000 (fictitious figures and tax rates) then the cost of the lease would come off of the 5,000 tax bill. Hence I'd pay 4,000 if the lease value was 1000?

Is this incorrect?

Assuming that the lease was for equipment that you need for your business then the lease cost would reduce the profits and so the tax would be slightly lower.

Using your example, if the Corporation Tax was £5,000 and the lease cost was £1,000, the tax bill would fall to £4,800 (£1,000 x 20% = £200, being the tax saving).

I must ask, why on earth are you leasing, I would guess that it would be much more tax efficient to buy outright, the capital cost is rarely very much and you avoid huge interest costs.

[northernladuk]

If this information was added to this thread then the next person to google the same question as I did would find the answer.

But have to read though a couple of pages of decade old information. Better to start a new thread so no one will find the 10 year old one and read through a ton of stuff that probably doesn't even exist any more let alone changed no?

Let me ask you a question though, what is more useless? appending useful information to an old thread or whinging like an old woman in an old thread with no useful information at all?

Oh, and the 3 links below it were no use then? Glad I wasted my time for you.

[cojak]

I've split this thread as there is little point in linking it to tax information that's 10 years old.

[stek]

You used to be able to spank your kids back then so I think the tax laws may have changed a little.

You are Stuart Hall and I claim my Five Pounds....

[kingcook]

Jesus, this must be a record. This thread is over ten years old. You used to be able to spank your kids back then so I think the tax laws may have changed a little.

[ljc]

If this information was added to this thread then the next person to google the same question as I did would find the answer.

Let me ask you a question though, what is more useless? appending useful information to an old thread or whinging like an old woman in an old thread with no useful information at all?

[northernladuk]

Hi, Sorry to resurrect an old thread but feel its a relevant question and people could benefit from all this information in one thread.

Does the above apply to IT leasing also? the lease company I'm dealing with are telling me the opposite ie.

If I have taxable profits of 50,000, and a tax bill of 5,000 (fictitious figures and tax rates) then the cost of the lease would come off of the 5,000 tax bill. Hence I'd pay 4,000 if the lease value was 1000?

Is this incorrect?

Jesus, this must be a record. This thread is over ten years old. You used to be able to spank your kids back then so I think the tax laws may have changed a little.

Not occur to you to open another thread? or speak to your accountant even?

EDIT : Or search even....

http://forums.contractoruk.com/accou...efficient.html

or google...

http://www.ukbusinessforums.co.uk/fo...ad.php?t=33983

http://www.nibusinessinfo.co.uk/cont...puter-hardware

[ljc]

Hi, Sorry to resurrect an old thread but feel its a relevant question and people could benefit from all this information in one thread.

Does the above apply to IT leasing also? the lease company I'm dealing with are telling me the opposite ie.

If I have taxable profits of 50,000, and a tax bill of 5,000 (fictitious figures and tax rates) then the cost of the lease would come off of the 5,000 tax bill. Hence I'd pay 4,000 if the lease value was 1000?

Is this incorrect?