Page 15 - PowerPoint Presentation

ALLOWANCES & CAPITAL GAINS

Recoupment

• Trading stock taken for private or domestic use or

consumption by TP – recoupment at cost price or

NRV or MV

• Trading stock – MV recoupment

• Donation

• Distributed as a dividend in specie

• Disposed for consideration less than MV

• Change of use i.e. to capital asset

• Applied for other purpose

Used in trade: s11(a) when acquired

Recoupment for non-business use at MV

Deemed s11(a) deduction = recoupment

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