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s11(f) Lease Premium Allowance Calculator

Work out your Lease Premium Allowance over time


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Parties often enter into leases of vacant commercial or industrial land, subject to payment of a "lease premium" by the lessee to the lessor. This is defined as "a consideration having an ascertainable money value passing from a lessee to a lessor - distinct from, and in addition to, or in lieu of, rent". It differs from rent in that it is paid in respect of the whole period of the lease. It is usually paid in a lump sum at the commencement of the lease.

Section 11(f) of the Income Tax Act contains the deduction for the lessee. The amount must be spread over the period of the lease, from commencement to end, including renewal periods, to a maximum spread of 25 years. You need to ensure that the leased asset is used for the production of income in order to qualify for this allowance.

Lease premium:   R

Date lease starts:   Start of

Date lease stops:   Start of

Renewal period (if exists in contract):  

Your financial year end:  




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submitting your
Tax returns?


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

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