Page 14 - F6 - Capital Allowances - Part 3
P. 14
Example
During the 2015 year of assessment (ended Dec) Mr
Diverse’s plant and machinery was destroyed in a fire. The
plant and machinery was purchased on 1 January 2014 for
R1 900 000 and was new and unused at that date.
The company was insured, and received an insurance
payment of R1 800 000 in the same year of assessment.
The insurance amount was immediately used to fund the
purchase of new, similar plant and machinery for R2 000
000.
Calculate the allowances and recoupments for the 2015
year of assessment if Mr Diverse elected the application of
par 65 of the Eighth schedule.
