Page 12 - Capital Allowances Recoupments Part 1 (CTA)
P. 12
Movable assets used in farming or production of
renewable energy: s 12B – [excluding s 12B(1)(f)]
- Based on cost (not value)
- TP must be owner of the asset OR buyer ito suspensive sale
- Used in the TP‟ s trade for:
→ production of bio-diesel or bio-ethanol
→ generating electricity from wind power, sun energy, hydro
power (< 30 megawatt) or biomass comprising organic
waste, landfill gas or plant material.
→ improvements (not repairs!) to machinery/ foundations (see
requirements in new proviso)
- Allowance: 50% (year 1); 30% (year 2); 20% (year 3)
- No apportionment for a part of a year.
- Only if asset is brought into use for 1st time in TP‟ s trade.
