s13 quin of the Income Tax Act No. 58 of 1962 (“ITA”) allows an annual building allowance of 5% on the cost of any new building owned by the taxpayer, if the said building is wholly or mainly used by the taxpayer during the year of assessment for the pur
Important:
This answer is based on tax law for the tax year ending 28 February 2018.
Answer:
The relevant words used in section 13quin are “other than the provision of residential accommodation”. The word “residential” is not defined for purposes of section 13quin and must take it ordinary meaning. The word “residential”, when used as an adjective, means “1. Designed for people to live in.” – see the Oxford dictionary. As the term “residential accommodation” is to be interpreted, we submit that a gym, being a place providing a range of facilities designed to improve and maintain physical fitness and health, will not be used for the provision of residential accommodation.