Hello sir
Can you clarify me that when we compute taxable trading profit on cash basis.. it is assumed for exam purpose that flat rate exempt of AMAP on motor cars is applied. My ques is ..can we also claim capital allowance on that motor car?
And also ..when we compute taxable trading profit by accrual basis and chose to use flat rate exempt (AMAP)for motor car ..can we also claim capital allowance ?
I'm just confused between two methods that whether capital allowance will be available or not in both situation ..
Thanks
Ask the Tutor ACCA TX-UK
Capital allowances
In the TX-UK exam you will be told if the cash basis applies and if so you will then also assume that the flat rate expenses system will also apply.
You cannot have both the flat rate scheme and claim capital allowances on cars!
In real life you can however choose to claim capital allowances on cars instead of adopting the flat rate scheme
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