Page 35 - Capital Allowances Recoupments Part 1 (CTA)

Commercial buildings (s 13quin)

Cost of a building or improvement under s 13quin is...

The lesser of:

- the actual cost or

- direct cost under a cash transaction

Including

Direct cost of acquisition, improvements or erection of building.

UNLESS

A part of the building was acquired without the TP erecting or

constructing it, then the cost is limited to:

-55% of the acquisition price if a part is acquired, and

-30% of the acquisition price if an improvement part is acquired

(s 13quin(7)). Applies on/after 21 October 2008