Facts: 

a) Developer A constructed a new building within a UDZ for the purpose of conducting a retail business. The cost of this new construction amounted to R200 million (including the cost incurred in demolishing an existing building). Trade commenced on 1 April 2014. On 31 March 2017 Developer A sold the building to Purchaser B for R308 million. 
b) Purchaser B added a new roof to the entire building as the old roof was badly damaged owing to poor construction, installed moving walkways on each floor and an environmentally friendly waste-disposal system which was completed during the 2018 year of assessment. These additions were considered to form part of the structure of the building and constituted a floor area of more than 1 000 m2. Developer A and Purchaser B have February year-ends. 

Result: 

a) Between 1 April 2014 and 31 March 2017, Developer A deducted 44% of the costs incurred, that is, 20% (R200 million × 20% = R40 million) in the first year and 8% (R200 million × 8% = R16 million) in each of the following three years. In total, R88 million was deducted. 
Note that no apportionment of the allowance is required if it relates to a period of less than a full year of assessment.
Upon the sale of the building for R308 million to Purchaser B, Developer A had to account for tax as follows: ​  

The R88 million recouped and the taxable capital gain of R86 400 000 (R108 million × 80%) had to be included in the taxable income of Developer A for the 2018 year of assessment.
b) Purchaser B could not deduct any allowances on the cost incurred by it on acquisition of the building from Developer A, as Developer A had previously deducted an allowance on this building. Purchaser B was, however, entitled to deduct the allowance for the 2018 year of assessment on the cost of the additions made, that is, costs incurred in relation to the new roof, the installation of the moving walkways and the new waste-disposal system.