for contract hire/lease rentals on vans is based on the accounting treatment of
Where the cost of lease/hire rentals charged to the accounts
each year is based upon the actual rentals paid then the tax relief is usually also
based on the rentals paid during the accounting year.
If rental payments are
abnormally loaded into an accounting year (for example, if all the rentals for the
entire lease period are paid in the first accounting year) then an adjustment is required
to spread them over the entire hire/lease period.
Depreciation and Finance Charges Basis:
Where lease or hire rentals
are split into depreciation and finance charges for accounting purposes the tax relief
can be based on depreciation under the capital allowances rules, with a separate tax
deduction for the finance charges implicit in the lease rentals (this is an approach
used by some larger companies to follow accounting conventions for leased assets).
Documentation Fees are normally allowed as a 1st year cost of contract hire/leasing.
For the self-employed where the vehicle is used partly for non-business purposes,
tax relief is apportioned according to the ratio of annual business miles to total