Page 19 - PowerPoint Presentation

Example – Roll-overs

A (Pty) Ltd acquired a new machine for R100 000 from a local

supplier (not a connected person) on 1 October 2014. The machine

was brought into use immediately and qualified for the s 12C

allowance.

Due to the rapid expansion of the operations of A (Pty) Ltd, it was

decided to replace this machine with a technologically more

advanced machine. On 1 November 2015 the old machine was sold

for R150 000 and a new and unused machine was purchased at a

cost of R450 000. The new machine was brought into use on 15

November 2015 and also qualifies for the s 12C allowance. The

company’s year-end is the last day of December each year.