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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Tax relief on the balancing allowance
Is it necessary to calculate and incorporate tax relief on the balancing allowance in the year of disposal in every question? Is there any exception?
Thanks,
If the asset is disposed of then there will always be a balancing charge or allowance and therefore a tax effect (a balancing allowance gives rise to a tax saving, a balancing charge gives rise to more tax payable).
This is all explained in my free lectures on investment appraisal with tax – the lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well. (Provided, of course, that you also buy a current edition of a Revision Kit from one of the ACCA approved publishers and practice all of the questions. Practice is vital to passing the exam.)