Tangible fixed assets are non-current assets with a physical existence, differentiating them from intangible fixed assets like patents. They are recorded at cost and depreciated over their useful lives.

Example/Scenario: A logistics company owns warehouses and delivery vehicles as tangible fixed assets, which generate income over several years. If the company spends £1 million on a new warehouse,it records this amount as an asset and depreciates it over 25 years, recognising an annual depreciation expense of £40,000.

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