Is a tax allowance of say 50% on new PPE a tax depreciation affecting TWDV the following year or does the TWDV in period two = cost - accounting depreciation ?
e.g new PPE of 100 000
allowance of 50%
accounting depreciation 10%
TWDV for period 2 = 50 000 or 90 000?
thanks
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Tax question
7y ago#1Hi,
The 50% is applied to the 100,000 in the first year to give a TWDV of 50,000 and then the 50% is applied to this 50,000 to give the TWDV in the second year. The accounting depreciation is irrelevant in calculating the TWDV.
Thanks
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