Terminal allowance for ceased asset blocks with zero depreciation is computed by a prescribed A+B/C formula and may be nil.

Terminal allowance is available only where a block of assets ceases to exist during the year and the scheduled depreciation rate for that block is zero. The allowance is computed by the formula A + B / C, with A equal to the block's written down value at the start of the year, B the actual cost of assets acquired in the block during the year, and C the amount accrued or received on the assets disposed during the year including carcass or scrap; a negative result is treated as nil.

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