Page 17 - F6 - Capital Allowances - Leases
P. 17
Example
Zibi Ltd sold a machine (that qualified for a s 11(e)
allowance) to Fimble Ltd for R2 500 000 and then hired
it back from Fimble Ltd on 1 March 2014. The machine
would qualify for a 20% wear-and-tear allowance. Zibi
Ltd originally bought the machine for R2 000 000. Zibi
Ltd had previously claimed allowances of R800 000 on
the machine and made a recoupment of R800 000 on
the sale to Fimble Ltd. Zibi Ltd also made a capital gain
of R500 000 on the sale.
Calculate the allowances available to Fimble Ltd
from this transaction for the year of assessment
ending 28 February 2015.
