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Wear and tear allowances.
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53.—Section 284(2) of the Principal Act is amended as respects capital expenditure incurred on or after 1 January 2001—
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(a) in paragraph (a), by the insertion before “subsection (4)” of “paragraph (aa) and”,
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(b) by the insertion of the following paragraph after paragraph (a):
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“(aa) Notwithstanding paragraph (a), where capital expenditure is incurred on or after 1 January 2001 on the provision of—
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(i) machinery or plant, other than machinery or plant to which paragraph (a)(ii) and subsection (3A) relates, or
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(ii) machinery or plant to which paragraph (a)(ii) relates, other than a car within the meaning of section 286 used for qualifying purposes within the meaning of that section,
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the amount of the wear and tear allowance to be made shall be an amount equal to 20 per cent of the actual cost of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement.”,
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and
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(c) in paragraph (b), by the insertion after “subparagraph (i) or (ii) of paragraph (a)” of “or the amount specified in paragraph (aa)”.
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