Asset Finance Part II

MODULE PR1.2
Principles of Asset Finance Part II
Tutor: Alick C Mulhall, FINANCE INDUSTRY TRAINING
Dates: 20 January & 21 April 2009
Time 1400 – 1730

Topics

Essential technical information

• The salient features of a finance lease
• The salient features of an operating lease
• Comparison of the differences
• Methods of asset acquisition

Capital Allowances (I)

A definition of plant or machinery
The difference between accounting and tax depreciation

Capital allowances

• · definition
• · rules for claiming
• · time apportionment

The varying rates of allowance
Funding Leases

The funding lease tests
Types of funding leases:

• · short funding finance leases
• · short funding operating leases
• · long funding finance leases
• · long funding operating leases

Exemptions for short funding leases

• · Sec. 220 dis-application of time apportionment
• · the rules for finance leases
• · the rules for operating leases

Capital Allowances (II)
Annual investment allowances
Business travel taxation
Integral fixtures
Payable ECA’S