Dilapidations charges now in your tax extract

A dilapidations provision measured at present value produces charges in your profit and loss account each year: the unwinding of the discount, and any revision taken to profit or loss. The Tax Computation Extract mentioned neither. A preparer working from it reversed depreciation and interest, deducted the cash rent, and left those charges sitting in taxable profit without ever being asked about them.

They now appear in their own Provision Movements column, on screen and in the PDF, with a note beneath the table.

They are deliberately not added to the net adjustment. Depreciation and interest are added back because tax does not follow the lease accounting model for an ordinary lease. A dilapidations provision is not part of that model: you would recognise it, and discount it, whatever the lease treatment. So its deductibility is an ordinary question about the expenditure, and the answer depends on your lease rather than on anything Lease102 can see. The note sets out what HMRC says and points at the references, so you or your accountant can take it from there.

Nothing you have already filed changes. The net adjustment is calculated exactly as before, so a computation you prepared last year still reconciles.