Tax computation Assessment

Can we claim input VAT on disallowed expenses in tax computation?

• Yes, input VAT can always be claimed regardless of the nature of the expense

• No, input VAT can never be claimed on disallowed expenses

• Input VAT can be claimed if the expense is for business purposes, even if it is disallowed for Corporation Tax

• Input VAT can only be claimed if the expense is allowable in the Corporation Tax computation

Purchased a tesla electrical car and zero omission exceed the limit . What is the capitall allowance claim in CT?

• 100% Annual Investment Allowance (AIA)

• 100% First Year Allowance (FYA)

• 18% Writing Down Allowance in the Main Pool

• 6% Writing Down Allowance in the Special Rate Pool

XYZ Ltd sold an item of plant and machinery for £6,000. and its tax written down value (TWDV) was £10,000 at the time of disposal. What is the correct capital allowance treatment?

• No adjustment is required

• A balancing allowance of £4,000

• A balancing charge of £4,000

• A writing down allowance of £1,800

A Van and BMW car (Non electrical) has been purchased in YE 202What is the capitall allowance claim in CT?

• 18% and 100%

• 100% and 100%

• 18% and 6%

• 100% and 6%

Which of the following is not treated as a qualifying expenditure for Annual Investment Allowance (AIA)?

• New laptop for staff use

• Refurbished forklift

• Purchase of land and buildings

• Factory air conditioning system

How are brought forward trading losses used in Corporation Tax?

• Must be used within one year

• Can only be carried back

• Can be carried forward and offset against future profits

• Are deductible against VAT liabilities

Which of the following costs is likely to be disallowed when computing taxable profits for Corporation Tax?

• Staff training expenses

• Fines and penalties

• Employer pension contributions

• Audit fees

A company purchases a car for £27,000 on 1 June 2024 with CO₂ emissions of 75g/km. How is it treated for capital allowances?

• 100% First-Year Allowance

• 18% Main pool WDA

• 6% Special rate pool

• Not eligible for any allowance

XYZ Ltd sold a machine for £20,000 that cost £25,000. And the written down value (TWDV) of £10,000 at the time of sale. What is the correct capital allowances adjustment?

• Balancing allowance of £10,000

• Balancing charge of £5,000

• Balancing charge of £10,000

• No adjustment required

What is the maximum Annual Investment Allowance (AIA) limit from April 2023?

• £50,000

• £100,000

• £1,000,000

• Unlimited