Dear tuitor,
Thank you so much for your lectures.
What if the replacement of domestic items are not the same as the old item? Do we still have to use
Amount of relief=cost of new domestic item-proceeds from old item
Or should we exclude the proceeds from old item as it is not the same as new?
Kindly explain sir.
Ask the Tutor ACCA TX-UK
Property Business Income- Individuals
What do you mean when you say "not the same as the old item"?
Do you mean a fridge is "replaced" by a washing machine?? Or replaced by a fridge freezer for example?
CRT tv is replaced by LCD tv.
Sorry for typing the question without proper content sir.
No problem - your knowledge of TV's is probably better than mine (!) but if the same product was available and a better one acquired then that would be an improvement - so for example a 39 inch LCD screen TV is replaced with a 55 inch UHD or 3D TV then clearly that would be an improvement. Don't worry it would be very obvious in an exam question!
Thank you sir. You are very helpful. I’m glad to refer your notes and watch lectures.
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