Finance Act, 1988
|
Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967. |
45.— Section 265 (as amended by section 20 of the Finance Act, 1985 ) of the Income Tax Act, 1967 , is hereby amended— | |
(a) by the insertion in subsection (1) after paragraph (c) of the following paragraph: | ||
“(d) where consideration (other than rent or an amount treated as rent under section 83 of the Income Tax Act, 1967 ) is received by the person entitled to the relevant interest in respect of an interest which is subject to that relevant interest,”, | ||
(b) by the substitution for subsection (2) of the following subsection: | ||
“(2) Where there are no sale, insurance, salvage or compensation moneys, or consideration of the type referred to in paragraph (d) of subsection (1), or where the residue of the expenditure immediately before the event exceeds those moneys or that consideration, a balancing allowance shall be made and the amount thereof shall be the amount of the said residue or, as the case may be, of the excess thereof over the said moneys or the said consideration.”, | ||
and | ||
(c) by the substitution for subsection (3) of the following subsection: | ||
“(3) If the sale, insurance, salvage or compensation moneys, or consideration of the type referred to in paragraph (d) of subsection (1), exceed the residue, if any, of the expenditure immediately before the event, a balancing charge shall be made and the amount on which it is made shall be an amount equal to the excess, or, where the residue is nil, to the said moneys or the said consideration.”. |