Finance Act, 1975

Adjustment of capital allowances by reference to value-added tax.

29.—(1) In computing any deduction, allowance or relief, for any of the purposes of—

(a) Parts XIII to XVIII, inclusive, of the Income Tax Act, 1967 ,

(b) section 22 of the Finance Act, 1971 ,

(c) the Finance (Taxation of Profits of Certain Mines) Act, 1974 , or

(d) section 22 of the Finance Act, 1974 ,

the cost to a person of any machinery or plant, or the amount of any expenditure incurred by him, shall not take account of any amount included in such cost or expenditure for value-added tax in respect of which the person may claim—

(i) a deduction under section 12 of the Value-Added Tax Act, 1972 , or

(ii) a refund of value-added tax under an order under section 20 (3) of that Act.

(2) In calculating, for any of the purposes of Part XVI of the Income Tax Act, 1967 , the amount of sale, insurance, salvage or compensation moneys to be taken into account in computing a balancing allowance or balancing charge to be made to or on a person, no account shall be taken of the amount of value-added tax (if any) chargeable to the person in respect of those moneys.

(3) Section 39 of the Value-Added Tax Act, 1972 , is hereby repealed.