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Chapter 5 :Capital Allowance: Example 6

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Chapter 5 :Capital Allowance: Example 6

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Tax Tutor.
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    Posts
  • February 12, 2017 at 9:51 pm #372125
    ghulamghous
    Member
    • Topics: 2
    • Replies: 5
    • ☆

    Sir, why thermal insulation of business building is directly added to allowances i.e 28000
    why not in special rate pool and then take 8% of the amount and then added to allowance?

    i,m confuse kindly explain this point to me.
    I shall be very thankful to u..
    Regards
    Ghulam Ghous

    February 13, 2017 at 2:58 am #372140
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Thermal insulation is indeed special rate pool expenditure rather than main pool expenditure, but it is expenditure that ranks for AIA and earlier in the chapter it clearly states that AIA should be given FIRSTLY to special rate pool expenditure ahead of main pool expenditure.

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