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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:  




Small
Business
Tax Returns
Made Easy


TaxTim will help you:

 Do Your ITR14 Tax Return without a Tax Expert
 Claim for all the Deductions your Business Qualifies for
 Turn your Accounting Records into a Tax Return

TaxTim asks you simple questions about your business, then processes your answers and completes your ITR14 business tax return instantly.

Get started