Page 21 - F6 - Capital Gains Tax - Proceeds, Cost Price & Roll-Overs
P. 21
Example – Roll-overs
Arson Ltd purchased a used manufacturing machine
on 28 February 2010 at a cost of R100 000. On 28
February 2012 the machine was destroyed in a fire.
The company received R120 000 from its insurer as
compensation. Arson Ltd purchased and started using
a more advanced new replacement manufacturing
machine on 30 June 2012 at a cost of R150 000.
Arson Ltd has a 30 June year-end.
Determine the capital gain to be brought into
account in the 2012 to 2015 years of
assessment.
