Page 70 - P6 Slide - Taxation - Lecture Day 1

Example - Depreciable assets formulae

A depreciable asset was acquired for R100 ten
(par 30(4))
years prior to 1 October 2001 (the full R100 had

been claimed as capital allowance for tax

purposes). The asset was disposed of for R700, 20

years after 1 October 2001. Ten years after the

valuation date, improvements to the value of R200

were done (on which capital allowances of R100

had been claimed up to the date of disposal).

Calculate the capital gain on the disposal of the

asset using TAB-formulae.