• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Capital Allowance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Capital Allowance

  • This topic has 3 replies, 3 voices, and was last updated 4 years ago by Tax Tutor.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 19, 2021 at 7:47 am #607103
    vickyxxi
    Participant
    • Topics: 18
    • Replies: 19
    • ☆

    Question:

    Joe has been in business for many years preparing accounts to 5 April each year. The tax written down value of his main pool at 6 April 2019 was £12,000. Joe sold machinery on 10 June 2019 for £11,900 which had originally cost £11,600. He made no acquisitions during the year ended 5 April 2020. What is the maximum capital allowance that Joe can claim for the period of account to 5 April 2020?

    The answer is £400 and the working is taking the TWDV b/f £12,000 minus the disposal (limit to cost) £11,600. Why is the disposal is limit to cost? Isn’t is supposed to minus the proceeds which is £11,900?

    January 20, 2021 at 1:22 pm #607288
    Burningdesire
    Member
    • Topics: 14
    • Replies: 14
    • ☆

    You take the lower off the disposal proceeds or original cost when it comes to disposal mate

    January 20, 2021 at 1:47 pm #607290
    vickyxxi
    Participant
    • Topics: 18
    • Replies: 19
    • ☆

    I see. I got it now. Thank you so much.

    January 21, 2021 at 11:05 am #607424
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Re original question – this issue is clearly dealt with in the study notes and lectures – please make sure you have worked through the lectures and notes before attempting questions so that you have the best opportunity of success!

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • smuuo on FM Chapter 8 Questions – Relevant cash flows for DCF
  • hikati on ACCA BT Chapter 16 – Performance and appraisal interviews – Questions
  • hikati on ACCA BT Chapter 15 – How an individual can develop – Questions
  • Salimbek909 on The Management Accountant’s Profit Statement – Absorption Costing – ACCA (MA)
  • hikati on ACCA BT Chapter 12 – Theories of motivation – Questions

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in