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hello sir
i have a doubt in this q.During May 2016 Molten?Metal plc spent a further £97,400 on repairs. The office building was not usable until these repairs were carried out, and this fact was represented by a reduced purchase price
ok sir so this is my question.
97400 is a disallowable expenditure so it is added .
to the profit..to find out tatp
now this 97400 is a capital expenditure.. so should we not give it capital allowance
in the solution. 97400 is not included in the capital allowance computation.We do not get capital allowances just because we incur capital expenditure – we only get CA’s if the expenditure is on qualifying plant and machinery, but a building, other than integral features, does NOT qualify as P&M!
ok so suppose if in this question..
instead of buliding it was a qualifying machine/ plant..
then the 97400 would be disallowed and it would get capital allowance ?
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