Finance Act, 1959

Manner of making allowances and charges (industrial buildings or structures).

28.—(1) Except in the cases mentioned in the following provisions of this section, any allowance or charge made to or on a person under the preceding provisions of this Chapter shall be made to or on him in charging the profits or gains of his trade.

(2) An annual allowance shall be made to a person for a year of assessment by way of discharge or repayment of tax if his interest is subject to any lease at the end of his basis period for that year of assessment.

(3) A balancing allowance shall be made to a person by way of discharge or repayment of tax if his interest is subject to any lease immediately before the event giving rise to the allowance.

(4) A balancing charge shall be made on a person under Case VI of Schedule D if his interest is subject to any lease immediately before the event giving rise to the charge.

(5) Any allowance which, under the preceding provisions of this section, is to be made by way of discharge or repayment of tax shall be available primarily against the following income:

(a) income charged to tax under Schedule A in respect of any premises which at any time in the year consist of or include an industrial building or structure,

(b) income charged to tax under Case III of Schedule D in respect of any rent payable for any such premises as aforesaid, or

(c) income which is the subject of a balancing charge under this Chapter.