Question 1

Section B - Case 3: Titanium Forging PLC

Titanium Forging PLC is a heavy manufacturing company. It recently changed its accounting date, resulting in a 15-month period of account from 1 January 2023 to 31 March 2024.

During the period, the company purchased new, unused manufacturing equipment for £2,000,000. Assuming the 'full expensing' rules apply, what is the capital allowance available on this equipment in the year of purchase?

Accepted Answer

Identify the asset as new main pool plant and machinery. Apply the 100% full expensing rule introduced for corporate entities.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Limiting the deduction to the £1m AIA limit or applying the old 130% super-deduction.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 4

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