Finance Act, 1986
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Capital allowances: treatment of grants, etc. |
52.—(1) (a) Subject to paragraph (b), where an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under section 241 or 251 of the Income Tax Act, 1967 , and the capital expenditure incurred on the provision of the machinery or plant in respect of which the allowance falls to be made was incurred on or after the 29th day of January, 1986, the following provisions shall apply:— | |
(i) expenditure shall not be regarded as having been incurred by a person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority, and | ||
(ii) the actual cost of any machinery or plant to any person shall, for the purposes of the said section 241, be taken to be the amount of capital expenditure incurred on the provision of such machinery or plant less any such expenditure as is referred to in subparagraph (i). | ||
(b) Paragraph (a) shall not have effect in relation to any capital expenditure which is or is to be met in the manner mentioned in paragraph (a) (i)— | ||
(i) under the terms of an agreement finally approved on or before the 29th day of January, 1986, by a Department of State, any board established by statute or any public or local authority, or | ||
(ii) under the terms of an agreement which— | ||
(I) is the subject of negotiations which were in progress on the 29th day of January, 1986, with a Department of State, any board established by statute or any public or local authority, and | ||
(II) is finally approved by such Department, board or authority not later than the 31st day of December, 1986. | ||
(2) Section 264 of the Income Tax Act, 1967 , is hereby amended by the insertion after subsection (3) of the following subsection: | ||
“(3A) In ascertaining the writing-down allowance falling to be made to a person under subsection (3), the residue of expenditure mentioned in that subsection shall, where it exceeds the amount of expenditure incurred by that person in respect of the sale, be taken to be the amount of expenditure so incurred.”. |