Hello sir,
What if in the last year of investment when the machine is sold, its selling price is equal to the book value ? What will the impact in tax ?
Thank You
Ask the Tutor ACCA FM
DCF capital allowance
7y ago#1We use the same rule as always.
The balancing charge or allowance is the difference between the sale proceeds and. the tax written down value (not the book value). If the two are the same then there is no balancing charge or allowance!
The tax rules are all explained in detail in my free lectures on investment appraisal with tax. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
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