ExpertACCA · Question 17 · Income Tax Liabilities
Section B: Case 1 - Vanguard Robotics
Scenario: Vanguard Robotics was run as a sole trade by Liam, developing specialized robotic arms for manufacturing. Liam prepared accounts to 31 December each year. On 30 September 2023, Liam ceased trading as a sole trader and transferred the entire business as a going concern to a newly formed company, Vanguard Robotics Ltd, in exchange for shares.
Question: Prior to incorporation, Liam purchased £1.5 million of new robotic testing equipment in May 2023. What is the maximum Annual Investment Allowance (AIA) Liam can claim on this expenditure for his final 9-month period of account?
Section B: Case 1 - Vanguard Robotics
Scenario: Vanguard Robotics was run as a sole trade by Liam, developing specialized robotic arms for manufacturing. Liam prepared accounts to 31 December each year. On 30 September 2023, Liam ceased trading as a sole trader and transferred the entire business as a going concern to a newly formed company, Vanguard Robotics Ltd, in exchange for shares.
Question: Prior to incorporation, Liam purchased £1.5 million of new robotic testing equipment in May 2023. What is the maximum Annual Investment Allowance (AIA) Liam can claim on this expenditure for his final 9-month period of account?
Answer options:
£1,000,000
£750,000
£1,500,000
£0
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