Qualifying Expenditure

Qualifying expenditure will generally be the cost of the assets to the taxpayer.

It does not matter how long a building has been owned or when the expenditure was incurred, as a claim can be made at any time.

Where a property has been purchased, wear and tear allowances are determined by separating the cost of the plant and machinery from the land and the buildings and then apportioning the plant and machinery cost from the purchase price using valuation techniques approved by SARS.

Where a building is developed, refurbished or fitted-out directly by the taxpayer, wear and tear allowances on plant and machinery and other capital allowances are determined by reference to and analysis of the actual development expenditure.