Page 35 - Nexia Cape Town 2018 TG Digital

ASSET TYPE CONDITIONS FOR ANNUAL ALLOWANCES ANNUAL ALLOWANCES
Commercial Cost of erecting any new and unused building as 5%
Buildings well as new and unused improvements wholly or
mainly used for the purpose of producing income
in the course of trade
Taxpayer acquires part of a building that is new 55% 3 5% of the cost
and unused wholly or mainly to be used for
producing income in the course of trade
Taxpayer acquires part of a building that has new 30% 3 5% of the
and unused improvements to be wholly or mainly improvement
used for producing income
Aircraft & Ships Must be used for purposes of trade 20%
Plant & New or unused manufacturing assets 40% in 1st year
Machinery 20% in each of the
3 subsequent years
Plant & New and unused plant or machinery used by the 100% of cost
machinery taxpayer directly in a process of manufacture by
a Small Business Corporation
Renewable Small scale embedded solar photovoltaic 100% of cost
Energy renewable energy with generation capacity not
– Machinery exceeding 1000 kW
– Supporting Road & fences where the electricity production 100% of cost
Infrastructure will exceed 5 MW
Residential New & unused units, erected or improved, Normal Unit 5%
Units – at least situated in South Africa, owned & used by the Low Cost unit 10%*
five units must taxpayer for the purposes of a trade he carries on�
be owned
New & unused units acquired, situated in South Normal unit 55% 3 5%
Africa, used by the taxpayer for the purpose of a Low cost unit 55% 3
trade he carries on 10%
Unit acquired with a new and unused Normal unit 30% 3 5%
improvement, situated in South Africa, used Low cost unit 30% 3
by the taxpayer for the purpose of a trade he 10%
carries on
*a building not exceeding cost of R300 000 or an apartment not exceeding a cost of R350 000

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