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4 Cards in this Set
- Front
- Back
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what is capital allowances?
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-its a tax deduction -deduction on the wear and tear of non current assets bought and used in a person`s trade or business |
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what is the difference between accounting depreciation and tax depreciation in a tax computation? |
CA replaces accounting depreciation, therefore in a tax computation -accounting depreciation is added back to derive adjusted profit AND -CA is the deducted from adjusted profit |
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who can claim CA? |
-a person who carries on trade or business AND -incurred expenditure on the provision of ''plant and machinery'' for use in the trade or business |
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whats the timing of ''incurred'' CA? |
-timing of incurred=in the preceding year for the relevant YA BUT -timing of incurred=1st of commencement if capital expenditure is incurred before the commencement of the trade,business or profession |
