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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Yes (and you don't need to be an expert to know the answer, just have the ability to read).
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.
I agree - in cases where the legislation is difficult to understand, is open to interpretation etc. In this case, though ...
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.
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.
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!
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 :)