Capital Allowance Powerpoint Presentation
Capital Allowance Powerpoint Presentation
Capital Allowance Powerpoint Presentation
PRACTICE
b. Machinery
• Explain the categories of capital
allowances
c. Industrial Building
• Initial Allowances: This is given for one year only, the year of
purchase to businesses that are not apart of the basic industries.
1. The business must be certified by the Minister responsible for that trade.
3. The asset must be used for the purposes of the qualifying business.
2. The shifts must have been operating throughout the working year and the
claim must be supported by a certificate from a registered public
accountant.
1.5 Important notes:
Investment Allowance:
Investment allowance is not deducted in arriving at the
written down value, nor is it included in the computation
of the balancing allowance or charge.
Balancing Charge:
Balancing charge is restricted to the total amount of
capital allowance given over the life of the asset.
1.6 Plant and Machinery:
Points:
If an item is part of the setting then the capital allowance
for a building would apply.
Private Vehicles:
Private vehicles do not qualify for an initial allowance and the
annual allowance is 12.5% of the capital expenditure restricted to
a maximum amount.
INDUSTRIAL BUILDINGS:
A hotel or resort cottage within the meaning of Section 2 of the Tourist Board Act;
NON-INDUSTRIAL BUILDINGS:
Point to note:
Industrial building does not include the cost of land.
2.0 Intangibles
The new regime extends the definition for scientific research and makes
provision for annual allowances for intellectual property rights.
THE END