• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Corporation Tax doubt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Corporation Tax doubt

  • This topic has 3 replies, 2 voices, and was last updated 8 months ago by Tax Tutor.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 17, 2022 at 4:08 pm #655900
    S4M101
    Participant
    • Topics: 7
    • Replies: 10
    • ☆

    Hello tutor,

    While computing the capital allowance for a company, is it mandatory for the purchase of new plant and machinery to firstly attract the 100% AIA before attracting the 130% FYA? or can it directly go to the 130% super deduction?

    Thanks in advance.

    May 19, 2022 at 3:08 pm #656034
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Have you worked through the OT lectures and Study Notes?

    May 19, 2022 at 3:58 pm #656037
    S4M101
    Participant
    • Topics: 7
    • Replies: 10
    • ☆

    yes, I had worked through the OT lectures and study notes, and the concept was clear from it.

    however, one of the question from the latest FA 2021 BPP study text had me confused.

    Illustration3: Computation of trading profits and TTP (pg 559)

    since the question is very long, I will just type out the relevant information necessary for the computation of the capital allowance.

    (7) plant and machinery

    On 1 April 2021 the tax written down value of the mainpool was £22,500. The following transactions took place during the year ended 31 March 2022:

    10June 2021 Purchased general plant- £20200
    25January 2022 Sold a van (original cost £17,000)- (£11500)
    15March2022 Purchased a motor car CO2 emissions 48g/k- £10600

    Here instead of using the 130% super deduction for the general plant, AIA of 100% is taken instead.

    May 27, 2022 at 11:37 am #656625
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Firstly my apologies for delayed reply.
    In relation to what you have said this would appear to be an updating error where the answer has not been updated for the new 130% allowance. It is a company (not an unincorporated trader) and it does not state that the plant and machinery is second hand so it must be assumed to be new and therefore the 130% allowance should be given.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Joanne94 on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • Ken Garrett on Digital strategy – CIMA E3
  • arjunsanthosh on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • cBarsoum on Audit Risk – ACCA Audit and Assurance (AA)
  • allistair.a@gmail.com on Digital strategy – CIMA E3

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy