Page 7 - F6 - Capital Allowances - Leases
P. 7
Solution (cont.)
Annual allowance 3 000 000/18.75 x 3/12 =R40 000
Year ended 30 June 2014 - No allowance, since the
factory was not yet brought into use in a process of
manufacture.
Year ended 30 June 2015 - S 13 annual allowance: 5%
of R500000 (the excess cost not qualifying for the s
11(g) allowance) = R25 000
Builder could also have elected to write off the R3 000
000 in terms of s 13(1) (over 20 years at 5% per year)
instead of in terms of s 11(g).
