Q: I need to know
if the 50/30/20 wear and tear allowance for a small business corporation should
be apportioned if the applicable asset was purchased during a year of
assessment. For example, if the asset was bought on 1 September and the
financial year end is February, can a taxpayer only get 50% of the allowance?
12E(1A)(b) does not in our view require that the allowance be apportioned if
brought into use during the year and provides for a straight line write off of
50/30/20 for 3 years starting in the year it was first brought into use.
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advice based on the facts and circumstances of each transaction/case. Even
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not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
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