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Chapter 4 Tax ajusted trading profit individuals practice question 10

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Chapter 4 Tax ajusted trading profit individuals practice question 10

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarTax Tutor.
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  • February 28, 2017 at 8:23 am #374696
    Avatarangelamalta
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    • Topics: 28
    • Replies: 82
    • ☆☆

    Hi tax tutor in the notes we are told that an improvement to an asset is disallowed as opposed to a repair which is allowed. In practice question 10 one of the expenses is decorating the office which has not been adjusted for in the answer. Would decorating the office not be classed as an improvement to an asset and therefore disallowable? Thank you in advance, Angela

    February 28, 2017 at 5:23 pm #374789
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3960
    • ☆☆☆☆☆

    Decorating or indeed redecorating as it would be is an allowable revenue expense, it is not capital – this is routine maintenance that needs to take place that simply returns the property to its original decorated appearance.

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