REVISION TAXATION I CAPITAL ALLOWANCES

s11(e) moveable s12C: manufacturing s13(1): Industrial s13quin: Commercial

assets use for trade movable assets use in Buildings and buildings
trade improvement
Requirements: Any moveable asset Plants & Machinery Building Building

Owned by the Owned by the taxpayer or Taxpayer must have Owned by the taxpayer
taxpayer or acquired acquired under para (a) of incurred cost to erect or
under para (a) of instalment credit agreement purchase New and unused buildings
instalment credit
agreement Bought in use for 1st time Wholly or mainly used in
into the taxpayer trade. Wholly/ mainly use in the production of income
To extent used for the manufacture Excluding residential
purposes of trade. Directly used in the process accommodation
of manufacture
If 12C doesn’t apply
Apportion: time &
extent of trade
Allowance Value: Lower Cost: lower Cost: Cost: Lower:
based on: • Cost and MV • Cost and MV • Excluding Land & • Cost and MV
finance cost
If leased asset: less NB: No cost no allowance
GRV
(GRV= the amount
you know you going
to receive at the end )
 s11(e) moveable assets
use for trade
Rate IN 47
Small asset (<7000) full
If leased assets: It is the
longer of lease period
and IN 47
s12C: manufacturing s13(1): Industrial s13quin: Commercial
movable assets use in Buildings and buildings
trade improvement
New & used: 40%,20% New: 5% 5%
20%,20%
Old: depends on the
2nd hand & leased: 20%, person acquired from but
20%, 20%,20%, 20% limited to 5%

Other Foundations Foundations Improvements: Increase AQUIRED PART of a

• Integrated with the • Integrated with the industrial capacity building without
asset and the asset and the useful life (if even not brought into use) erecting/constructing it:
useful life of which of which is limited to • 5% and look at • If part: 55% x 5%(
is limited to that of that of the asset may separately sub divided)
the asset may be be written off on the • If improvement :
written off on the same basis as the This is the only section (other 30% x 5%
same basis as the asset. than section 12N) that does
asset. not refer to ownership. The If erected themselves = 5%
Moving costs lessee of a qualifying building only
Moving costs may therefore claim an
• Written off in equal allowance for costs that it
• Written off in equal instalments over the incurs. These would typically
instalments over remaining write-off be improvements not
the remaining period of the asset, qualifying for a section 11(g)
write-off period of including the year in allowance.
the asset, which the moving costs
including the year are incurred.
in which the • If the asset is already
moving costs are written off, the moving
incurred. costs may be claimed
• If the asset is in full in the year
already written off, incurred.
the moving costs
may be claimed in
full in the year
incurred.

NB: Apportion for days i.e

not annual figures