btc - capital allowances - questions

lisnic Registered Posts: 141 Dedicated contributor 🦉
my post doesnt seem to have posted?!

anyway does anyone know where i could get some additional questions for btc - capital allowances for practice?

Im distance learning with bpp and have done the questions in the course companion but normally save the revision companion quetsions until exam revision. BPP extras has a section where yo can log onto 'my units' and for each unit there is usually links to additional practice questions, additional past papers, sims etc but for BTC there isnt any of this

Also a quick question as it hasnt really mentioned in book what happens to the capital allowance when its worked out but is this deducted from the operating profit from P&L when calcultaing taxable profits?




  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉

    Yes - you're correct with what happens to capital allowances. When calculating taxable profit the capital allowances are deducted in lieu of depreciation (not allowable expense for tax purposes). Your Taxable profit would look something like: -

    Profit as per accounts: £ xx
    Add: Depreciation £ xx
    Less: Capital Allowances £ (xx)
    Taxable Profit £ xx
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