Page 94 - P6 Slide - Taxation - Lecture Day 1
P. 94
Solution - Roll overs
The capital gain on disposal of the old machine amounts to R20 000. Under par
65 this must be disregarded and spread over future years of assessment in
proportion to the capital allowances to be claimed on the replacement asset.
The capital allowances on the new machine will be as follows:
2012: R150 000 × 40% = R60 000
2013: R150 000 × 20% = R30 000
2014: R150 000 × 20% = R30 000
2015: R150 000 × 20% = R30 000
The capital gain of R20 000 must be recognised as follows:
2012: R20 000 × R60 000/R150 000 (40%) = R8 000
2013: R20 000 × R30 000/R150 000 (20%) = R4 000
2042: R20 000 × R30 000/R150 000 (20%) = R4 000
2015: R20 000 × R30 000/R150 000 (20%) = R4 000
Please note:
• The recoupment, (s 8(4)) it would have been taxed to the same extent as the
capital gain.
