Page 114 - P6 Slide - Taxation - Lecture Day 1

Effect for debtor:

Capital asset Allowance asset

Asset no longer held @ date of debt reduction

The assessed capital loss is reduced Leads a recoupment ito s 19 of the

with the “reduction amount” Act

If assessed capital loss are reduced by

the “reduction amount” to R0 = no

capital gain (can only reduce capital

losses)