AIA BPP Question Revision Kit 240 Jogger page87

SStanislava6y ago

Hi I am struggling to understand the AIA on 500,000 Machinery in this question. In the answers they have put 200,000 as AIA allowance against the Machinery but the allowance as per the 2019 act is now 1,000,000 therefor I think this is incorrect in the question? Please can anyone confirm if that is the case as I don't understand where they got the 200,000 from? Even if you apportion the Machinery when the transaction took place it does qualify for higher AIA. I would very much appreciate explanation if possible? Many thanks

TTTax Tutor6y ago#1

It can only be an error in the updating of the answer as clearly the only AIA that we need to know about is the current £1m

SStanislava6y ago#2

Hi Does that mean that the 1M is available for the AIA Machinery of 500k capital Allowance in this question? this is not first time I have found an error in BPP revision kit. Maybe I should try Kaplan revision kits in the future. thank you Stani

TTTax Tutor5y ago#3

Hi Stani Yes 1M is now the level of AIA available as you rightly pointed out. It is not for me to recommend changing to Kaplan - both sources are extremely good but Tax holds a special problem for material writers as it requires a detailed update to be done every year, so no material writer is immune from updating errors! What I would recommend all students do however is to write to their material supplier and request that they publish on their websites a continuously updated errata sheet for their material and have the facility for students to notify them of potential errors in their material to ensure the best possible resource is supplied to their customers.

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