Page 57 - P6 Slide - Taxation - Lecture Day 1

Standard formulae (par 30(1) and 30(2))

1. standard TAB formula (par 30(1))

2. standard proceeds formula (par 30(2))

Use Stnd Proceeds formula if expenses incurred before AND on/after 1 Oct 2001

To calculate an adjusted P (derived from expenditure incurred before 1 Oct 2001)

no capital allowances have been claimed on the asset
Use only the standard TAB formula when:

OR

expenditure only incurred before 1 October 2001

OR

the asset was disposed of at a capital loss (or break-even)