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,
- P11d query 268 5
- Rental expenses 50 1
- Intercompany Payroll Journals 131 5
- What are my legal responsibilities 342 14
- Business lending another business money (UK) 84 2
- Rental business through company without owning the property? 336 4
- No more tax returns... 1,540 13
- How much state pension will client lose out if drops salary 420 6
- Signed accounts for bank 283 7
- Companies House paper incorporation - date of birth omission 476 10
- Landing clients 419 15
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,153 22
- Termination Payment 204 5
- dividend date - whose income is it? 212 3
- CRM / marketing 109 2
- Allocation of income from property 757 26
- Stand alone practice management software 1,885 28
- Opening a Quick books file 137 1
- 64-8 problems 522 8
- Guaranteed rents - which is the turnover? 350 10