Page 13 - F6 - Capital Allowances - Leases

Limitation To Allowances For Lessors Of “Affected

Assets” s 23A

Calculation of limitation of capital allowance

 Sum of deductions (s 11(e), s 11(o), s 12C) on affected

assets leased – LIMITED TO:

 Taxable income (after deductions) from lease (but

before deduction of limited allowances).

 Rental income from any movable property and not

only from affected assets.

 Where rental income and other income on capital

allowances are applicable – allocate deductions.

 Where allowance is limited, excess can be carried

forward to following year.