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Question 2Plant and Machinery
Softapp Ltd is a software developer. The company’s summarised statement of profit or loss for the year ended 31 March 2013 is as follows:
| Note | £ | |
|---|---|---|
| Operating profit | 1 & 2 | 519,300 |
| Other income | ||
| Income from property | 3 | 36,700 |
| Loan interest receivable | 4 | 8,100 |
| Profit on disposal of shares | 5 | 64,900 |
| Finance costs | ||
| Interest payable | 6 | (67,200) |
| Profit before taxation | 561,800 |
Plant and machinery
The tax written down value of Softapp Ltd’s plant and machinery as at 1 April 2012 was nil.
During October 2012 Softapp Ltd had an extension constructed adjacent to its existing freehold office building, which is used by the company’s employees as a staff room.
The total cost of £100,000 is made up as follows:
Integral to the building
Building costs of extension £61,000
Heating system £3,600
Ventilation system £4,600
Not integral to the building
Furniture and furnishings £29,400
Refrigerator and microwave cooker £1,400
Total £100,000
The full annual investment allowance of £25,000 is available to Softapp Ltd.
Required:
What are the capital allowances for the year ended 31/03/2013?