67
machinery or plant is equal to or greater than the amount on
which the charge would have been made
(1) the charge shall not be made; and
(ii) the amount of any initial allowance in respect
of the said expenditure shall be calculated as if
expenditure had been reduced by the amount on which
would have been mado; and
charge
(iii) in considering that anmal allowance is to
be made in respect of the new machinery or plant, there shall
be left out of account a proportion of the machinery or plant
equal to the proportion which the amount on which the charge
would have beɑn made bears to mount of the said expendi–
ture; and
(iv) in considering whether my and, if so, what
balancing allowance or balancing charges falls to be made in
respect of the new machinery or plant, the initial allowance in
respect thereof shall be deemed to have been increased by
an amount equal to the amount on which the charge would
have been made.
42.
Expenditure on the provision of machinery arplant
shall include capital expenditure on alterations to an
existing building incidental to the installation of that
machinery or plant for the purposes of the trade, profession
or business.