100
CAP. 112]
Inland Revenue
[1989 Ed.
and increased by any balancing charges made:
Provided that in computing the residue of expenditure there shall be written off, in respect of any year in which no initial or annual allowance fell to be made, an amount of one-fiftieth of the capital expenditure in the case of a year prior to the year of assessment commencing on 1 April 1965, and one-twenty-fifth of the capital expenditure in the case of such or any subsequent year of assessment, and for the purposes of this proviso “year” means the period which would have comprised a year of assessment in respect of which an initial or annual allowance would have fallen to be made if the building or structure had then been in use as an industrial building or structure and the provisions of section 34 had then been in force. (Replaced 35 of 1965 s. 22)
(2) For the purposes of this Part, any capital expenditure incurred for the purposes of a trade, profession or business by a person about to carry on such trade, profession or business shall be treated as if it had been incurred by that person on the first day upon which he does carry on such trade, profession or business. (Added 35 of 1965 s. 22)
(3) References in this Part to capital expenditure incurred on the construction of a building or structure do not include any expenditure incurred on the acquisition of, or of rights in or over, any land. (Added 29 of 1982 s. 11)
(Replaced 36 of 1955 s. 46)
40A. Initial allowances in years of assessment
1974/75 to 1975/76
(1) Where-
(a) the assessable profits of a person for the year of assessment commencing on 1 April 1974 are computed under section 18A; and
(b) there is an interval between the end of the basis period for the year of assessment ending on 31 March 1974 and the beginning of the basis period for the year of assessment ending on 31 March 1975,
then, notwithstanding paragraph (b) of the definition of "basis period" in section 40(1), but subject to subsection (3) the initial allowance on capital expenditure provided under this Part shall be made only on the higher of the capital expenditure incurred in the interval or the second basis period referred to paragraph (b) of this subsection.
(2) Where-
(a) the assessable profits of a person for the year of assessment commencing on 1 April 1974 have been computed under section 18; and