Finance Act, 1988

Amendment of section 25 (increase of writing-down allowances for certain industrial buildings) of Finance Act, 1978.

48.Section 25 (as amended by section 25 of the Finance Act, 1979 ) of the Finance Act, 1978 , is hereby amended by the substitution for subsection (2) of the following subsection:

“(2) (a) Where for any chargeable period an allowance falls to be made under the said section 264 in respect of qualifying expenditure, the allowance shall, subject to subsection (4) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to an allowance made under the said section 264 shall be construed as a reference to that allowance as increased under this section.

(b) As respects any qualifying expenditure incurred on or after the 1st day of April, 1988, any allowance made under section 264 of the Income Tax Act, 1967 , and increased under paragraph (a) of this subsection, in respect of that expenditure, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed—

(i) if the qualifying expenditure is incurred before the 1st day of April, 1989, 75 per cent., or

(ii) if the qualifying expenditure is incurred on or after the 1st day of April, 1989, 50 per cent.,

of the amount of that qualifying expenditure.”.