I need some advice with regard to tax relief on a leased mobile phone handset. I have been told by the finance company that I am able to have some form of tax relief on the lease that I have with them. They have calculated this at 20% but doesn't it depend on the type of lease I have, and would this be referring to capital allowances? 
 
Arthur Weller replies:  
I do not know an answer to your question because I do not know the details of your lease. But it could be that this is a lease for five years or less; and it is a finance lease not accounted for in accordance with generally accepted accounting practice. In that case, the rental payments are spread evenly over the life of the asset. If the expected life is five years, this would explain the 20% figure.