Summary
Summary Capital Allowances
- Course
- Institution
A summary of capital allowances allowed on equipment, machinery and buildings used for trade. S12E for small businesses also included.
[Show more]
1 review
By: tisetsomekwa • 4 year ago
Seller
Follow
sjg2797
Reviews received
Content preview
Capital AllowancesSection 11(e) – Wear & Tear Allowance
The allowance is the amount by which the value of an asset has diminished
with use
Excludes repairs and fixed assets
Allowed for foundations and support structures if for a qualifying asset
Qualifying assets:
Used for trading
Calculated on based cost from date brought into use
Apportioned for months
Straight-line write-off, write off period determined by SARS
If 2nd hand the original write off period applies
If total cost is < 7000 then a full write off in one year allowed
Section 12C – Manufacturing Plant and Machinery Allowance
Must be brought into use for the 1st time by the current tax payer (essentially
one can’t fully write off an asset, stop using it then attempt to claim allowances
when it is being used again)
Qualifying assets:
Owned or subject to a credit purchase agreement
Must be acquired at a cost
Specifically allowed on foundations and support structures
No s12E assets
Moving costs written off through the write off period
New Assets: Allowance of 40%(year1),20% p.a(year 2-4)
2nd hand assets: Allowance 20% per year (also applies to ships and aircraft)
Section 13(1) Industrial Factory or Building Allowance
House manufacturing process
Allowances subject to time periods
Dates Allowances
Prior to 25 March 1959 None
25 March ’59 – 30 Jun ‘85 2% p.a
1 Jul ’85 – 31 Dec ‘88 Initial 17.5% thereafter 2% on the
balance remaining after 17,5% (Brought
into use before 31 Dec 1989)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sjg2797. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.85. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71498 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now