[annemiquel2]

Sorry to bother again but I have a question on another topic that came up in my practice questions.

“A company purchased a secondhand freehold office building for £400k. This figure included £30k for a ventilation system and £42 for a lift.”

I do not understand why only £72k worth of equipment were booked in the capital allowance calculation in the answers.
Can we not claim capital allowances on freeholds? Or is it because it is an “office building” and as such does not qualify as “plant (or machinery)”?
But if this is the latter, it would mean that we cannot claim capital allowances on the freehold itself but we can on the integral features of the building, no matter its use. Am I correct?

Thanks a lot for the clarification,

Anne

[annemiquel2]

Hi Adelaide, could you let me know from which provider you got FA2017 materials?
Dear Tax tutor, would you have any views on when you will start to publish the new materials in OT?
Many thanks
Anne

[annemiquel2]

Thanks a lot! Once again for this module, if I pass, this will definitely thanks to your lectures!

[annemiquel2]

Dear Sir,
I think I just found the explanation by myself, may I ask you to correct me if I am wrong?

If the company maintains control accounts, errors on the sales journal do not impact the suspense account but the AR. Reason is: we use the total balance from the AR control account to post it in the GL against Revenue, so the TB will balance.

If the company does not maintain control accounts, then we need to correct the error in the TB using the suspense account.

Am I correct?
Thank you very much

[annemiquel2]

“The smaller percentage for the other service department” – Now I understand.
Thank you very much for your help, Sir

[Author]

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