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what is that 85% on lease payment on amount deductible by Traiste Ltd

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what is that 85% on lease payment on amount deductible by Traiste Ltd

On June 2017 exam paper Q4 Jordi (a) (ii): the amount deductible by Traiste Ltd in respect of the redumndancy package for Esta:

The answer shows Lease payments: £420 x 6m x 85%, I cannot figure out what is this 85% for.

Please help.

Lynn

November 2nd 2017 AN ACCA USER 140 Points

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