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ALLOWANCES & CAPITAL GAINS




            Leases premium




     • This allowance is calculated proportionate to the period of use


         in a year.


     • Deducted by the taxpayer.



     • Recipient include in gross income.



     • Upon the early termination of a lease, any unclaimed lease

         premium will not be deductible for Income Tax purposes.



     • SARS practice is to allow a full years deduction, i.e. no


         apportionment in the year of termination.


     • The lessee will lose the remaining deduction for Income Tax


         purposes, but it will constitute base cost for CGT purposes.






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