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Sir,
I have two questions;
1) If the project is acquiring a company, will we still calculate a balancing charge/allowance?
2) My capital allowances on NCAs are (in millions) :
2016 – £351.96
2017 – £326.40
2018 – £316.61
2019- £307.11Both tax payments and capital allowance claims occur one year in arrears.
I’m confused as to when will the first tax saving occur?Also,
The project life is 2016-19.Thank you!
With reference to your first question, there will only be a balancing charge or allowance if we have been getting capital allowances (tax allowable depreciation) on some or all of the initial expenditure.
As regards your second question, it is impossible for me to answer without seeing the full question.
However my free lectures on NPV with taxation should answer your question.
Our lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well.
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