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capital allowance computation example 3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › capital allowance computation example 3

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Tax Tutor.
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  • January 12, 2017 at 11:05 pm #366191
    calmesamy
    Participant
    • Topics: 1
    • Replies: 6
    • ☆

    Why is the balance of 20000 going to main pool. Thought purchase excess over 100000 should go to special rate pool

    January 13, 2017 at 12:03 pm #366220
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Look again at what specific expenditure has to be allocated to the special rate pool. Your reference to 100,000 suggests to me that you are thinking about the purchase of long life assets(?) but in this example it is simply the purchase of machinery where any excess over the AIA limit is allocated as normal to the main pool.
    If an asset is to be treated as a long life asset then the relevant information will be provided by the examiner.

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