Finance Act, 1997
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Amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967 . |
22.— Section 241 of the Income Tax Act, 1967 , is hereby amended by the substitution of the following subsections for subsection (10): | |
“(10) The preceding provisions of this section shall, with any necessary modifications, apply in relation to professions, employments, offices and, subject to subsection (11), the letting of any premises the profits or gains from which are chargeable under Chapter VI of Part IV as they apply in relation to trades. | ||
(11) (a) Where, by virtue of subsection (10), the provisions of this section apply to the letting of any premises, they shall apply and have effect as respects the year of assessment 1997-98 and subsequent years of assessment in respect of capital expenditure incurred on the provision of machinery or plant within the meaning of subsection (1) (b) (i) where— | ||
(i) such expenditure is incurred wholly and exclusively in respect of a house which is used solely as a dwelling which is or is to be let as a furnished house, and | ||
(ii) the said furnished house is provided for renting or letting on bona fide commercial terms in the open market. | ||
(b) Where a person incurs capital expenditure of the type to which paragraph (a) applies and an allowance falls to be made in respect of that expenditure under this section— | ||
(i) subsection (2) of section 16 of the Corporation Tax Act, 1976 , shall not apply or have effect as respects the whole or part (as the case may be) of any loss which would not have arisen but for the making of the said allowance, and | ||
(ii) subsection (6) of section 14 of the Corporation Tax Act, 1976 , shall not apply or have effect as respects the said allowance.”. |