Furniture purchase in cash

This discussion explores whether depreciation can be claimed on a furniture purchase of £80,000 paid entirely in cash. While a tax invoice from the supplier is generally required, a key point raised is that under Section 43(1) of the Income Tax Act, cash purchases of assets exceeding £10,000 may result in the cost of acquisition being deemed nil, thus preventing depreciation claims. Further consideration is given to Section 40(A)(3), which disallows cash expenses exceeding £10,000.