[Question] Limit for writing off small assets

[knewman]

I've read in a few places that in the 2006 budget speech it was proposed that:
"the threshold below which small assets may be written off in full in the year of acquisition will be increased from R2000 to R5000 on 1 March 2006."

Was this actually passed into law?

I can't find this limit stated on any government websites or on SAICA website.

(I had to buy a generator for my business earlier this year that was just over the R2000 limit)

Thanks,
Kevin

[Dave A]

I know for the purposes of the 2007 tax year the limit was R5 000.00 (per my auditors).

I suspect SARS does "official" notification via practice notes. Maybe one of the tax/accounting expert members can confirm that. All I know is my auditors arrive with a little book with this type of information. The same book has depreciation rates for different types of assets too.

[Morticia]

Yes, well spotted & egg on the face of Government - the proposal was never tabled or promulgated and it was only ever mentioned in that year's budget speeech, but it has been SARS practice to allow the R5 000.

All other acceptable rates are reflected in Practice Notes 19 & 35 issued by SARS.