PDFCALCULATION OF CAPITAL ALLOWANCE GENERAL
(regulation 35(1), (2) and (4)(a))
Step 1
Separately for each business of the person, identify the pool of depreciable assets owned by the person as at the end of the last basis period ending within the year of assessment 2015 that are used by the person in carrying on the business.
Step 2
Identify the class of each depreciable asset in accordance with paragraph 1 of the Third Schedule of the Act.
Step 3
Rearrange in accordance with sub-regulation (2) of regulation 37, the written down value of each depreciable asset as at the time referred to in Step 1.
Step 4
Separately for each business and each of the person’s Class 1, 2 and 3 depreciable assets, bring down the written down values at the end of the basis period for the previous year into the respective pools.
Step 5
The result is treated as the written down value of the Class 1, 2 or 3 pool of depreciable assets, as the case requires, as at the time referred to in Step 1.
Step 6
Add to the written down value of the pool as at the time referred to in Step 1, the cost base of assets added to the pool after that time but before the end of the basis period.
Step 7
Reduce the result, but not below zero, by the consideration received from the realisation of an asset from the pool during the basis period. (Any excess of amounts so received is treated in accordance with sub-sub-paragraphs (a) and (b) (i) of subparagraph (1) of paragraph 4 of the Third Schedule of the Act).
Step 8
The result, if any, is the written down value of the pool at the end of the basis period to which the formula in subparagraph (4) of paragraph 2 of the Third Schedule to the Act shall be applied.
Step 9
In the case of class 4 and 5 depreciable assets, reduce the result, but not below zero, by any consideration received from the realisation of an asset from the pool during the basis period. (Any excess of amounts so received is treated in accordance with sub-subparagraphs (a) and (b) (ii) of subparagraph (1) of paragraph 4 of the Third Schedule of the Act).
Step 10
In applying the limit in subparagraph (7) of paragraph 2 of the Third Schedule of the Act, the amount added to the depreciation basis under sub-sub-subparagraph (ii) of sub-sub-paragraph (a) of subparagraph (2) of paragraph 3 shall include the excess expense provided in subsection (3) of section 12 of the Act.