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Question 2Leasehold property
Tax rates
Tax rates 2013
Softapp Ltd is a software developer.
Leasehold property
On 1 January 2013, Softapp Ltd acquired a leasehold office building, paying a premium of £100,000 for the grant of a ten-year lease. The office building was used for business purposes by Softapp Ltd throughout the period 1 January to 31 March 2013.
Required:
What amount of premium can be deducted from trading profits in the year ended 31/03/2013?