Page 33 - Capital Allowances Recoupments Part 1 (CTA)

Low cost residential units on loan account (s 13sept)

CAPITAL ALLOWANCE?

= 10% of any amount owing by the employee to the employer on

the interest-free loan at year-end.

RECOUPMENT?

If any amount owing to the employer is paid back to the

employer the deemed recoupment is the lesser of:

- The amount repaid on the loan by the employee, or

- the amount claimed as a deduction under s 13sept in that or

any previous year of assessment (s 13sept(4)) “which is not

yet recouped”

Silke Example 9.10.