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1) why exempt benefit of employee is allowance deduction expense of employer who provides it? It implies that both position get tax relief. Ex : outplacement counselling services to employee which was made redundant.
2) how long the trading loss of unincorporated company can carried back ward, one year, 12 months? ( in incorporated company is 36months) ( in note i was preceding yearS)
3) why legal fee of defending the business domain is allowable deduction expenditure? It relates to capital item
4) why legal fee relating to the court action of misleading advertisement is not allowable deduction exp? It relates to trading businessin question 2) 36 months only for cease of trading of company, i mean trading loss of individual in normal condition
5) The cost of the second-hand office building purchased on 10 February 2014 for £280,000 includes fixtures qualifying as plant and machinery (but not as integral features). These fixtures originally cost £11,200, and at the date of purchase had a market value of £6,200 and a written down value of £3,400. Sofa Ltd and the vendor of the office building have made a joint election regarding the sale price of the fixtures to enable Sofa Ltd to claim the maximum possible amount of capital allowances in respect of them.
Would you explain how did vendor and Sofa ltd make a joint election(the mechanism) and what is the implication of joint election.(1) (3) & (4) Tax is a set of rules laid down in statute and determined by case law. On such matters as these there is no question as to why, this is not a philosophical issue it is a rule and must be learned, but a few comments below,
(1) The tax system encourages certain behaviours such as making pension contributions by exempting various benefits provided by the employer to the employee but allowing the cost to be deductible for the company
(3) This is to do with trading
(4) Breaking the law does not get tax relief!(2) No such thing as unincorporated company! A company is incorporated and subject to corporation tax whereas an unincorporated trader is subject to income tax. For income tax losses see OT notes chapter 7
(5) where did question come from?
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