Sir, could you please correct me if I am wrong in stating that:
1). Are small pool write-offs (e.g.<1000) permitted for Special Rate Pool balances? No, they are not.
2). Is office building occupied by a company classified as a plant for CA purposes? No, it is not.
3). Housing benefits (non job related). Do we have to apportion the benefit of accom. use/ benefit of excess value (e.g. <75000) if the flat is available for less <12m? No, we do not do apportionment.
Ask the Tutor ACCA TX-UK
a dozen of quick questions
1) The small pools WDA election is available for both the main and special rate pools
2) No buildings are eligible as plant for CA purposes but CA will be available in respect of the cost of integral features
3) The living accommodation benefits computed are annual benefits so will be time apportioned if available for less than the full tax year
Thank you for your prompt response.
Let me ask you this:
Page 131 of OT notes - "Trading losses may be surrendered to other companies in the group, which may then relieve the losses against their own taxable total profits."
Now, I am looking at question 162 in BPP REVISION KIT 16/17 (Long Ltd group) - one of the companies has surrendered its loss which is set against TRADING INCOME (NOT TTP) of one of the group companies ending the year in profit.
So what method is the right one? thank you once again.
I do not have the BPP material BUT group relief is NOT a deduction from trading income it is a deduction from TTP - the only relief that goes ONLY against trading income is the deduction by the company of its own trading loss b/f. Also remember that group relief allows for partial claims.
If the claimant company only had trading income then that of course would be its TTP!
yeah, I understand that, but in BBP answers deduction is not against TTP. Is there a way to send you an e-mail with excerpt from the book or attach print screen?
Must admit my strength is tax not technology! If you just write down here what the answer shows that will be fine BUT the bottom line is that group relief is a deduction from TTP NOT from trading income - end of story!
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