Tax deduction of impairment of assets
I am currently writing an essay regarding the tax treatment of impairment of assets in various countries across Europe.
I would appreciate it if someone answers the following question:
Do the tax authorities in the UK allow the deduction of loss incurred following the recognition of an impairment?
For example, entity owns a mechine and the mechine fair value is 50$, as for today.
The mechine Carrying amount is 100$.
According to IAS 36, the entity should low the carrying amount and write a loss in her books of 100-50=50$.
Can 50 be deducted from the firm income for taxation?
In addition, please refer me to a formal source (a law or a court ruling) regarding this issue.
Thanks in advance,
- Complicated Company car purchase 188 2
- Ltd Company Buying Own Shares and Transferring Assets 153 3
- Cash basis 451 12
- Retail vat schemes for a restaurant 130 1
- Rental Property W&T And Equipment 259 1
- Legislation access for part-time sole practitioner? 283 1
- Ownership of land - declaration of trust 147 3
- Fee base v staff ratio 310 6
- NIC thresholds - two employments 1,842 27
- Statutory Accounts - Dividends Disclosure Note 320 3
- Unincorporated organistion ceasing to exist 229 2
- Gift in kind to charity by company: services 85 1
- Investor exit 188 3
- Partially exempt? 364 10
- Debtor/creditor set-off 141 1
- Redundancy payment added to p45 405 3
- Undeclared rental income 2,271 22
- CIMA accountant wants to start consultancy 393 4
- Statutory sick pay 256 3
- Overseas bank interest 231 5
- Skandia using wrong address 560
- FHL, period of grace and Entrepreneur's relief 303
- Does anyone use PS Financials accounting software out there? 301
- Employee rewards 283
- Gift of reversion and lease into trust by two different people - later PPR 237
- EPS Analysis - Change to EURO 222
- Etax Australian 181
- LLP in Construction Industry 146
- Selling On Amazon & Calculatign Prices/Vat 127
- Interest and late payment charges HMRC 126