A tax saving of R3.5m in first year for a newly developed shopping centre

Development of Shopping Centre

Instructed by a private property company to advise on the availability and level of capital allowances following the development of a major shopping centre for approximately R480m and with a rentable area approaching 65,000m2.

Having obtained and analysed all relevant cost information obtained from the client and their quantity surveyors, including the detailed final account, supporting invoices and capital expenditure ledgers, we carried out a detailed property inspection, and were able to identify relevant qualifying expenditure to determine the level of Wear & Tear Allowances and allocate it to the appropriate financial periods.

The total level of Wear & Tear Allowances amounted to in excess of R100million, being some 21% of the development expenditure, and resulted in a tax saving in the first year of approximately R3,500,000 and over the first three years of ownership of some R10,500,000.

In addition, a large proportion of the residue of the development expenditure, being some R340million also qualified for Commercial Buildings Allowances, which attract writing down allowances of 5% per year, and therefore resulted in an additional first year tax saving of R4,760,000.

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Purchase Price

This is the original or anticipated purchase price or development cost of your property.

Do not enter the current value here.

Building Type

Please provide the type of building you are looking to claim allowances on.

Note: You will be able to add further information about the type of building in the next step.

Your options here are;

Office.
Retail: Including high street, shopping centres and retail warehouses.
Mixed Use.
Industrial: Including warehouses and distribution centres.
Other: Leisure, hotels, casinos etc.

Building Category

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Other Information

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Floor Area

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You can provide either square footage or metres, but only use figures here.
The floor area you specify can either be gross or net internal space.

Floor Area Units

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and if the measurement has been taken as net or gross internal space.

Date of Purchase

Please enter the approximate month and year of purchase, or
if you have developed the property, please provide the
approximate date of completion.

Location Of Property

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