Deferred tax question

Monsoon

When calculating the deferred tax in relation to AIA:

If you have some capital assets on which you are claiming depreciation but no capital allowances are claimable (eg a drainage system which is disallowable CA22010)...

Does the value (cost minus zero capital allowace/AIA) form part of the tax written down value for the deferred tax calucultion? Or do you omit it? I.e. do you pool it and just never take an allowance?

I would have thought you'd have to include it, as otherwise you aren't comparing like with like.

Also can I dobble check which is the debit and which the credit?
I presume it's a debit in the P&L where tax relief is obtained quicker than the depreciation rate?

Thank you

Monsoon

Thanks Jay.

Yeah that makes sense now - omit the asset from both parts of the calcuation as the tax treatment isn't going to change.