Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Capital allowance Example 5 – Wendy – Page 44 Open Tuition study notes.
- This topic has 4 replies, 2 voices, and was last updated 9 years ago by lakshmana iyer krishnan.
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- August 8, 2015 at 1:10 pm #266241
Question states 20% private use, but answer takes it was 60:40 – seems as an error.
More important wendy has salary income – annual salary of 40K. For the assessment year 2014-15 – his business income is taken for the period from July 14 to 5th April 15.
However his salary is taken only for 3 months (Jan 15 to March 15), in the answer in Page 187.
Could you please explain the reason for this and why salary for same period of July 14 to Mar’15 is not considered, same as business income?August 9, 2015 at 12:04 pm #266350I think you need to look again very carefully at this example as there is little of what you say that is accurate.
In respect of the salary, Wendy was only in employment until 30 June 2014 – there is no salary after that date as it was from then that she started in self employment!! The 3 months salary is from April – June 2014 NOT January to March 2015!!
The private use restriction is for the car used by Wendy – 60% business use! You are quoting the other car where there is private use by an employee which is NOT an issue for the capital allowances computation!August 9, 2015 at 3:41 pm #266393Thank you for your patience and the explanation. Apologies for writing without double checking.
Warm regardsAugust 10, 2015 at 3:29 pm #266569No problem hope you have gone back to the notes and now resolved the problems you had with the example
August 10, 2015 at 4:10 pm #266577Yes sir. I got confused. Your notes are very very useful and allows fast completion of individual chapter and reach the stage to answer comprehensive questions.
It is a great boon to have you to ask and clear doubts. - AuthorPosts
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