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AIA question additions same year as disposal

Hi I cannot find an expert answer on this. If a company purchases plant (general pool) and disposes of it in same year, can AIA be claimed on the purchase price, and then capital allowance 18%  claimed on the TWDV b/fwd minus the disposal proceeds (lowest of cost and DP)? i think this is correct as it works as a balancing charge for the items disposed of and on which originally AIA claimed. thanks. 

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By Ruddles
13th Nov 2018 13:48

Yes (and you don't need to be an expert to know the answer, just have the ability to read).

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By Jdopus
to Ruddles
13th Nov 2018 14:29

Hardly any need to be cheeky about it, it was a reasonable question. We all like to get a second opinion on our readings of the rules from time to time.

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By Ruddles
to Jdopus
13th Nov 2018 14:44

I agree - in cases where the legislation is difficult to understand, is open to interpretation etc. In this case, though ...

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By jcace
to Ruddles
13th Nov 2018 15:07

To be fair, you don't just need the ability to read... you also need to know where to read and what to read as well as how to interpret what you read.

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By Ruddles
to jcace
13th Nov 2018 15:16

Again, I don't disagree. However, anyone providing tax advice to paying clients should know where the legislation on plant and machinery capital allowances is - and how to 'interpret' it, which isn't difficult in this case.

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to Ruddles
13th Nov 2018 17:47

Did you consider the possibility that the OP might like to read things written down, rather than off a computer screen, and hasn't yet found a suitable paper supplier? Thought not!

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By Ruddles
to Portia Nina Levin
13th Nov 2018 18:37

No I didn't. But if that's the case he'll need to PM me his address so that I can mail my response to him :)

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13th Nov 2018 20:43

Sock it to em Neanderthal. You won't be the only one puzzling about this.

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