According to section 13 - Manufacturing building allowances (South African Tax):

The building annual allowance may be claimed in respect of buildings:

1) purchased by the taxpayer, provided the person from whom it was purchased was entitled to the allowance

2) erected by the taxpayer

3) purchased by the taxpayer from another person, where the building was never used prior to its purchase.

This may be a stupid question, but if i purchased a factory building in 2012 from a vendor who used the building in the furtherance of his/her enterprise, will I then be allowed to claim the annual deduction? Or must it be a new building? Points 1 and 3 above seem to contradict each other. If the previous owner was allowed a deduction, then the new owner is entitled to the allowance, but then point 3 states that the building must have never been used. Seems ambiguous. Any input will be very appreciated! Thanks