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Deferred tax revaluation property

Deferred tax revaluation property

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My presessor has recognized a DTL for a property revaluation of 1.000.

Are there any criterias before recognizing deferred tax related to a property revaluation?

Suppose a property revaluation will not be included in tax basis capital allowances but would only be included in carrying value.

Would we need to check that the property revaluation is all related to qualifying assets?

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By Tax Dragon
05th Feb 2021 15:21

Qualifying assets? Qualifying in what sense?

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By johngroganjga
05th Feb 2021 15:41

For capital allowances I assume.

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Replying to johngroganjga:
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By Tax Dragon
05th Feb 2021 16:09

Ah, I was reading the question in the mirror. I read something like "are CAs based on revaluations?" You think it should be read more like "do we do revaluations only for CA assets?"? Or even "did the previous accountant only do revaluations for CA assets?"

(Most likely the answer to all three questions is "no", so maybe it doesn't matter so much what was actually being asked!)

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By RaxJ
05th Feb 2021 16:17

Huh? Qualifying assets?

Are you referring to investment property? I believe the property needs to be revalued each year according to fair value.

Which standards are you using? IFRS? FRS?

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Psycho
By Wilson Philips
05th Feb 2021 16:54

I know that we shouldn't be dismissive of those whose first language is not English, or of those who do not possess good typing skills, but I'm sorry, the question is gobbledygook.

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By Tax Dragon
05th Feb 2021 16:58

Someone's been spending lockdown watching Blackadder.

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By paul.benny
05th Feb 2021 18:14

See some earlier answers to your earlier questions on deferred tax.

Deferred tax is the tax calculated on the difference between accounting book value and tax written down value. That's it.

You don't need to understand anything about real tax, qualifying assets, capital allowances or any of that stuff - unless you're the one calculating the tax wdv.

There is no obvious reason for an accounting revaluation to affect the tax wdv of a asset. If you revalue assets upwards, that gives you a deferred tax liability.

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