The new proposals
- Rollover relief for depreciation recovered on buildings (and other business assets) destroyed by the recent earthquakes.
- Changing the timing of deemed disposal of destroyed buildings for depreciation recovery purposes.
- Allowing deductibility of losses when a building is not destroyed by an event (such as the recent earthquakes), but has to be subsequently demolished as a consequence.
Amending legislation is proposed to be enacted by July / August this year, with retrospective application from 4 September 2010.
The attached taxmail discusses the proposed depreciation amendments in greater detail:
If you have any questions on the above, please speak to your usual KPMG advisor or contact: