Page 20 - F6 - Capital Allowances - Leases

Deemed Recoupment: Lessee Rents Property After

Lease (S8(5))

 Rentals after termination of lease is deemed to be

nominal in relation to the fair market value of the

property if it is:

< 10% of the market value per year

Lessee deemed to have acquired

asset for no consideration

DEEMED RECOUPMENT

MV Ltd to
rent paid
 Market vale after termination of lease: allowed as a

Cost to lessor deduction

Less: 20% depreciation on reducing balance method