Pool of assets!

Pool of assets!

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Hi all

Client has a general pool of assets which capital allowances have been claimed upon. Currently it shows an opening balance of £10,000 but £5,000 worth has been scrapped this year.

Under normal circumstances I know you can not write off pool items until cessation but I also feel that by not writing off the £5000 scrapped items the accounts will be false.

What would you do?

Please help.

Cheers
Neil

Neil

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By NeilW
11th Nov 2005 09:10

Tax vs Financial
Unless you can use the short life assets route then I'm afraid the pooling arrangements remain.

Remember that the financial accounts are the ones that are required to show a 'true and fair' view, not the tax accounts. You can write off the items in your asset register quite happily and reflect them in the financial accounts. They will then be reversed and replaced with the CA calculations in the tax accounts.

The CA computation is merely a device to work out how much tax is due. I'm sure some cynics would argue that all tax computations are false :-)

NeilW

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