Finance Act, 1959
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Subsidies towards wear and tear. |
42.—(1) Where— | |
(a) an event occurs which gives rise or might give rise to a balancing allowance or balancing charge to or on any person in respect of any machinery or plant provided or used by him for the purposes of a trade; and | ||
(b) any sums (hereinafter in this section referred to as the said sums) which— | ||
(i) are in respect of, or take account of, the wear and tear to the machinery or plant occasioned by its use for the purposes of the trade, and | ||
(ii) do not fall to be taken into account as his income or in computing the profits or gains of any trade carried on by him, | ||
have been paid, or are or are to be payable, to him directly or indirectly, | ||
then, in determining whether and, if so what, balancing allowance or balancing charge falls to be made to or on that person, there shall be deemed to have been made to him for the years of assessment during which the machinery or plant was used for the purposes of the trade wear and tear allowances in respect thereof the total amount of which is equal to the total amount of the said sums, over and above the wear and tear allowances, if any, which have been made to him in respect of the machinery or plant. | ||
(2) Nothing in this section shall affect the provisions of subsection (4) of section 34 of this Act. |