Deferred Tax and the increased Annual Investment Allowance
Deferred tax must be provided for on a Full Provision basis (para 7 of FRS 19 and para 9.4 of the FRSSE 2008) and where the deduction for capital allowances is greater than the depreciation charged for the period, there will normally be a liability for deferred tax, subject to its being sufficiently material to be accounted for, other timing differences in the period and timing differences brought forward from previous years. Read more
