ExpertACCA · Question 28 · Corporation tax liabilities
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.
The company also installed a new air conditioning system (an integral feature) costing £500,000. It has already fully utilized its Annual Investment Allowance (AIA) on other assets. Under the current rules for corporate entities, what first-year allowance can be claimed on this integral feature?
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.
The company also installed a new air conditioning system (an integral feature) costing £500,000. It has already fully utilized its Annual Investment Allowance (AIA) on other assets. Under the current rules for corporate entities, what first-year allowance can be claimed on this integral feature?
Answer options:
A 100% first-year allowance.
A 50% first-year allowance.
A 6% writing down allowance only.
No allowance is available until the next accounting period.
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