Forum Replies Created
- Posts
Thanks for responding. Much appreciated.
I literally typed the question straight from the revision kit (its BPP TX-UK FA 2021 ebook so for this year) and that was the question. The answer they had in the back used 3600 to calculate the use and gift benefits
My answer using what you said (which is what I originally did when calculating) was 1433 gift benefit and 400 use benefit for 21/22 which gave me total taxable benefits of 1833.
My understanding is that when John obtained the computer, the value was 2000. So it probably was in use before by another employee.
47. John is employed by Zebra plc. He was provided with a computer for private use on 6 November 2020. The market value when first provided to an employee was 3,600 and the computer had a market value of 2,000 when first provided to John for private use. Zebra plc gave the computer to John on 5 April 2022 when it had a market value of 1,000.
What are the total taxable benefits for John in respect of the computer for the tax year 2021/22?
a. 2,880
b. 3,300
c. 1,720
d, 1,833Additionally in example 5, why wasn’t aia deducted from the new machinery purchased before subtracting the disposal of assets? The aia for 3 months would have totally cleared off the asset. Or is this done this way because the business is ceasing to trade?
In computing the capital allowances, should we first add the new purchases to whatever balances brought forward, subtract any disposals, then if there is a positive remainder (assuming the company is going concern) we subtracted aia and wda where applicable then? I’d like to be clear on the format because I find with the addition of disposals and balancing adjustments I am getting confused.
Oh I see. Thanks a lot Sir.
As an aside, this would be a relevant costing question right? Because in the revision kit this was under pricing decisions…
