Page 11 - F6 - Capital Allowances - Intellectual Property & Recoupments

Example

 On 1 February 2015 Mr Fast sells a manufacturing

machine to Mr Slow (his brother) at R1 500 000

(when market value was R1 800 000). Mr Fast

originally bought the new machine for R3 000 000

on 1 February 2014 and started to use it in the

process of manufacture immediately.

 Calculate the tax implications of the sale of the

machine for Mr Fast for the 2015 year of assessment.