IRIS Computation Assesment

A company buys machinery for £50,000 on 1 July 2024. It is eligible for Annual Investment Allowance (AIA). How much can the company claim in capital allowances in the first year?

• £0

• £9,500

• £50,000

• £25,000

A company has a special rate pool balance of £40,000 at 1 April 2024. No additions or disposals. What is the writing down allowance for 2024/25?

• £6,000

• £8,000

• £4,000

• £2,400

A company buys a new diesel van for £20,000. How much can it claim as capital allowances in the year of purchase using AIA?

• £0

• £3,600

• £20,000

• £10,000

A company buys a new electric car (0g CO₂ emissions) for £35,000 on 1 June 2024. What is the capital allowance in the year of purchase?

• £35,000

• £6,300

• £18,000

• £0

A company buys a petrol car with CO₂ emissions of 120g/km for £25,000. What rate of WDA applies?

• 100% FYA

• 18% main rate pool

• 6% special rate pool

• Not eligible for allowances

A company donates £2,000 to a registered UK charity. How should this be treated in the corporation tax computation?

• Deducted from accounting profit before tax

• Added back in tax computation and deducted from total profits after other reliefs

• Ignored for tax purposes

• Treated as a capital expense

A machine originally costing £10,000 (main pool) is sold for £6,000. The pool value before disposal was £8,000. What is the balancing charge?

• £2,000

• £6,000

• £4,000

• £0

An electric car bought for £30,000 is sold after 3 years for £12,000. It was claimed at 100% FYA initially. What is the balancing charge or allowance?

• Balancing allowance £18,000

• Balancing charge £18,000

• No adjustment

• Add to main pool

A company pays £5,000 interest to a non-UK lender and deducts £1,000 income tax on CT61. How much is allowable interest expense in the CT computation?

• £5,000

• £4,000

• £1,000

• £6,000

A company’s special rate pool balance is £15,000. It sells a long-life asset for £20,000, with no other assets in the pool. What happens?

• Balancing allowance £5,000

• Balancing charge £5,000

• Reduce pool to £0 and carry forward

• No adjustment