Page 52 - F6 - Capital Gains Tax - Base Cost

Example - Depreciable Assets Formulae (Par 30(4))

A depreciable asset was acquired for R100 ten years

prior to 1 October 2001 (the full R100 had been

claimed as capital allowance for tax purposes). The

asset was disposed of for R700, 20 years after 1

October 2001. Ten years after the valuation date,

improvements to the value of R200 were done (on

which capital allowances of R100 had been claimed

up to the date of disposal).

Calculate the capital gain on the disposal of

the asset using TAB-formulae.