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Capital allowances : Balancing allowance

HHarigovind6y ago
Hello sir, I have a problem in the concept of balancing allowance. What i know is that, we give balancing allowance when an asset is disposed off or the business ceases to trade. I was doing a question No. 255, where it states that, All the items in Special rate pool has been disposed off and short life asset 2 also sold. In the solution, there was balancing allowance on the remaining amount of short life asset 2 after disposal, but there was no balancing allowance on Special rate pool instead they charge WDA @6%. Is it a mistake or am I missing the law? Enlighten me. Thankyou in advance Harigovind Pandey
GJGhulam jillani6y ago#1
Balance allowance is only arise special rate pool and main/general pool on ceased of trading.
HHarigovind6y ago#2
so, if there is any short life asset and it gets sold, then we will provide balancing allowance?
TTTax Tutor6y ago#3
You need to work through the lectures and notes - specifically the section on non pool assets - before reverting to this forum
GJGhulam jillani6y ago#4
yes
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