Page 22 - Capital Allowances Recoupments Part 3 (CTA)
P. 22
Excess of R600 000 = recoupment ito s 19(6) & s 8(4)(a) + R600 000
Further deductions/allowances on the plant in future?
Limitation rule of section 19(7) applicable to allowance assets:
Aggregate amount of deductions/allowances allowed to
K Ltd will be limited to:
Aggregate of expenditure incurred to acquire the plant R1 450 000
Less: Sum of (R2 050 000)
Reduction amount (R1 450 000 – R0) R1 450 000
Deductions/allowances previously allowed R600 000
Maximum amount to be allowed as further deductions Rnil
If there is a disposal of the plant in future,
what would be the base cost of the plant for CGT purposes?
