Hi there,
On the chapter 5- capital allowances, it mentions a balancing allowance is only available when the company ceases to trade. However, in example 4 and example 6, there is no mention of cessation, however, a balancing allowance has been used?
Please can you explain why this is?
Many thanks. Kind regards,
Ask the Tutor ACCA TX-UK
Capital Allowances
Sorry I meant example 2 and example 6
Eg 2 & 6 - the balancing allowance is given on the private asset as it is no longer in the business and needs to be written off.
The rules you refer to affect the main pool only
Thank you!
no worries
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