Tax deduction of impairment of assets | AccountingWEB

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, 

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Not allowable

johngroganjga |
johngroganjga's picture

formal source

eladaravr |


andrew.hyde |


eladaravr |