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ACCA Taxation (TX-UK) Trading Profit part 5

VIVA

Reader Interactions

Comments

  1. rutu says

    January 22, 2020 at 5:47 am

    Why is the capital allowance of the car taken at 18%?

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  2. joanna70729 says

    March 28, 2019 at 5:32 am

    what wasn’t the capital allowance of car in normal basis counts like 8000+12000*60%*8%?
    The car emissions is 122 which is special rate pool isn’t it?(since 122>110)

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  3. asiulak says

    January 20, 2019 at 3:46 pm

    Can you please let me know if cars purchased by the business and used by employees (not the owners) can qualify for mileage allowance or should the business treat them as capital allowances?

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  4. asiulak says

    January 20, 2019 at 3:44 pm

    Rent should be included in the private rate adjustment, am I wrong?

    “The flat rate amount reflects the non-business proportion of expenditure on household goods and services, rent, utilities, food and non-alcoholic drinks.”

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  5. coolzealot says

    August 25, 2018 at 5:56 pm

    Why are the motor expenses (60% of 3600) NOT included in the CASH Basis Calculation? {as they are included in the Normal calculation}

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    • hsnkzmi says

      October 4, 2018 at 1:51 am

      because under the cash basis only a flat rate of deduction is allowed for both the car and revenue expenses relating to it.

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      • ahmedakande019 says

        May 25, 2019 at 5:25 am

        sorry, i dont understand what you mean…please can you explain…

        Also the motor car purchase has CO2 emission of 122g so i felt it should be under special rate pool..and so should attract 8%*60%

        what do you think?

  6. juliasicas says

    July 2, 2018 at 11:12 pm

    Good afternoon,

    In Example 7 I don’t see why we take the full 12 months when we are calculating the Capital Allowances. If the Adam started trading on June 1, 2017 and prepares accounts in May 31, 2018, shouldn’t we only take into consideration for our calculations a period of 10 months?

    Thanks in advance.

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    • coolzealot says

      August 25, 2018 at 6:08 pm

      Capital Allowances are deducted from profits before the Opening Year Rules are applied. In other words when using opening year rules Tax Adjusted trading profit is used.

      Capital Allowances are calculated for a period of account (in this case exactly 12 months)

      However in calculating capital allowances for an “accounting period” longer or shorter than 12 months (which might be the case when you start a new trade) then the AIA and WDA are scaled up or down as appropriate

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  7. tjamieson says

    May 23, 2018 at 8:13 pm

    My bad, I can see the AIA have been used. Thanks,

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  8. tjamieson says

    May 23, 2018 at 8:11 pm

    Hello,

    Why are we not using the AIA capital allowance for the purchase of the equipment (8k) for the normal basis?

    Many thanks,

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  9. jihane says

    May 4, 2018 at 8:45 pm

    Such a great a funny teacher
    EVE single lady single lady lol
    Thanks a million sir

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    • Fran says

      December 9, 2018 at 10:48 pm

      I concur. His touch of humor (of course sparingly used) makes these “interesting” chapters bearable. Salut to you sir!

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  10. sajjad5150 says

    April 23, 2018 at 7:21 pm

    thanks sir for such a great lectures.

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