Page 18 - F6 - Capital Allowances - Intellectual Property & Recoupments

Solution

The recoupment will be allocated as follows:

Machine B:

 250 000 x 1 750 000/3 750 000 = R116 667

 (This part of the recoupment will be deferred in

accordance to the allowance on machine B, thus

40:20:20:20 over the next 4 years)

Office building:

 250 000 x 2 000 000/3 750 000 = 133 333

 (This part of the recoupment will be deferred in

accordance to the allowance on the office block (s13

quin) at 5% over the next 20 years)