Chapter 17 – Long Period of Account – ACCA Taxation (TX-UK) lectures
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hello, i dont understand why you claimed AIA on the vehicle? (68000) thanks
Why wasn’t the 50% of the balancing figure of £60,000 prorated by 3/12?
Hello Jo,
Thanks a lot for the videos.
Could you please explain the long life assets costing GBP 310,000 was dealt with? I didn’t see it in the workings Also, in the last line under ‘3 months to 30 June 2023’, could you please explain where ‘FYA (50% x GBP 60,000)’ comes from?
Thank you.
Where does £60,000 come from?
The long life assets of £310K were dealt with in the special rate pool. We are only allowed to claim 3/12 of AIA. Hence, £250K. The remaining £60K (£310 less £250K) can be claimed under FYA at 50%.
As in the question is given that “additional assets of £310,000″ , As AIA is time apportioned *3/12 So AIA available for 3 month =£250,000 and it will be used against £310,000 And the remaining Amount in the pool (i.e, £310,000 – £250,000= £60,000) will be eligible to clain FYA(£60,000*50%).
(To use GBP symobol PRESS ” ALT key and 0163″)
Thank you for the lectures, they are very valuable in preparation for the exam!
Would you please clarify why when calculating capital allowance for sole trader the AIA applies to all expenditure on plant and machinery except cars (p49 or notes), and when working with corporate tax second hand van is subject to AIA 100%?
Many thanks