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I just practice the Practice Question 9 Ballet(course notes). In this question, the tax for capital allowances received in Yr 1 even it said the tax paid with one year delay. I thought it starts Yr 2.
The question says that the machine can be in full working order immediately before the start of the next financial year.
So…it is bought at the end of the current financial year. So capital allowances will be calculated immediately (at end of current financial year) but the tax effect will be 1 year late – time 1.
(If it was bought at the start of a financial year, then it would be 1 year before CA’s were calculated, then another year tax delay – then it would be time 2.
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