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I am looking at June 2012 exam, question 2. There is a special rate pool and during the year all items from the pool are sold. In the answer is written that there is no balancing allowances because the business has not ceased. Is that mean that we have balancing allowance only in last year of the business?
pp. 32 OpenTuition Notes
“(c) A Balancing Charge can arise at any time on a general pool or special pool if disposal proceeds exceed the balance on the pool.
(d) A Balancing Allowance can only occur on the general pool and special rate pool on cessation of the trade.”
Thanks for the answer.
Is this rule applies only for general and special rate pool? What about some depooled assets?The rule applies for general pool and special rate pool.
One can have a balancing charge or balancing allowance at any stage with a de-pooled asset.
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