Finance Act, 1992
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Application and amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967. |
26.—(1) As respects machinery or plant to which this section applies, section 241 of the Income Tax Act, 1967 , shall apply and have effect— | |
(a) as if the following subsection were substituted for subsection (1) (including the provisos thereto): | ||
“(1) Subject to the provisions of this Act, where a person carrying on a trade in any chargeable period has incurred capital expenditure on the provision of machinery or plant for the purposes of the trade— | ||
(a) an allowance shall be made to him for that chargeable period on account of the wear and tear of any of the machinery or plant which belongs to him and is in use for the purposes of the trade at the end of that chargeable period or its basis period and which, while used for the purposes of the trade, is wholly and exclusively so used, | ||
(b) the amount of the allowance shall, subject to subsection (6), be equal to 15 per cent. of the capital expenditure incurred as aforesaid, and | ||
(c) the allowance shall be made in taxing the trade: | ||
Provided that where a chargeable period or its basis period consists of a period which is less than one year in length the allowance to be made under this section shall not exceed such portion of the amount specified in paragraph (b) as bears to that amount the same proportion as the length of the chargeable period or its basis period bears to a period of one year.”, | ||
and | ||
(b) as if subsections (7) and (8) were deleted. | ||
(2) This section shall apply to machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which, on or after the 1st day of April, 1992, is provided for use for the purposes of a trade, profession, employment or office. | ||
(3) Section 4 of the Finance Act, 1968 , shall not apply or have effect in relation to machinery or plant to which this section applies. | ||
(4) Section 241 of the Income Tax Act, 1967 , is hereby amended, as respects capital expenditure incurred on or after the 24th day of April, 1992, by the insertion of the following subsection after subsection (6): | ||
“(6A) No allowance shall be made under this section in respect of capital expenditure incurred on the construction of a building or structure which is, or which is deemed to be, an industrial building or structure within the meaning of section 255.”. | ||
(5) In relation to a case in which subsection (1) has had effect, any reference in the Tax Acts to an allowance made under section 241 of the Income Tax Act, 1967 , shall be construed as a reference to that allowance as determined pursuant to that section, as applied and amended by this section. |