Page 9 - F6 - Capital Allowances - Leases

Example

 On 15 April 2015, Twintopia (Pty) Ltd and the

Municipality entered into an agreement whereby the

Municipality leased a piece of land to Twintopia (Pty)

Ltd and Twintopia (Pty) Ltd undertook to erect a new

office block for use in their business on the piece of land.

Twintopia (Pty) Ltd immediately commenced with the

erection of a new office block at a total cost of R6 500

000. The erection was completed and the offices

brought into use for purposes of Twintopia (Pty) Ltd's

trade on 30 September 2015.

 Calculate the allowances for the years of

assessment ended 31 October 2015 and 31

October 2016.