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Balancing Allowance

MFMuslim Farooque10y ago
Hello, I was confused regarding balancing allowance I'm capital allowances that is balancing allowance subtracted from overall capital allowance and balancing charge(negative) added ?
TTTax Tutor10y ago#1
No - if a balancing charge arises then this will reduce the capital allowances and hence increase the trading profit. If a balancing allowance arises then it will be added to the capital allowances and hence will reduce profits for tax purposes.
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