1955-HKRS28-8-22_Part03 — Page 5

Repeal and replace- Brent of

section 40.

TIGERS

allowances in respect of assets of the old partnership acquired by the new partnership granted for the year of assessment in the basis period for which such assets were acquired by the new partnership, shall be apportioned pro rata between the old and the new partnership."

46. Section 40 of the principal Ordinance is repealed and replaced by the following section-

"Interpre- talion.

40. In this Part-

"basis period" has the meaning assigned to it by section 2 except where two basis periods overlap or where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, when in the first case the period common to both and in the second case the interval, shall be deemed to fall in the first basis period only; "capital expenditure on the provision of machinery or plant" includes capital expenditure on alterations to an existing building incidental to the installa- tion of that machinery or plant for the purposes of the trade, profession or business; "commercial building or structure' means any build- ing or structure not being an industrial building or structure used by the owner wholly and exclu- sively for the purposes of his trade, profession or business;

"industrial building or structure'

means a building

or structure used by the owner thercof- (a) for the purposes of a trade carried on in a

mill, factory or other similar premises; or

(b) for the purposes of a transport, dock, water

or electricity undertaking; or

(c) for the purposes of a trade which consists of the manufacture of goods or materials or the subjection of goods or materials to any process; or

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(d) for the purposes of a trade which consists in

the storage-

(i) of goods or materials which are to be used in the manufacture of other goods or materials; or

(i) of goods or materials which are to be subjected in the course of a trade to any process; or

(iii) of goods or materials on their arrival by sea or air into the Colony; or

(e) for the purposes of the business of farming, and in particular, the said expression includes any building or structure owned by a person carrying on such a trađe, undertaking or business and provided by him for the welfare of workers employed in his trade, undertaking or business and in use for that purpose:

Provided that notwithstanding anything con- tained in the foregoing the expression "industrial building or structure" shall not include any building or structure in so far as it is in use as a dwelling house, other than as a dwelling house for the bousing of manual workers, retail shop, showroom, hotel or office;

"relevant interest” means, in relation to any expendi- ture incurred on the construction of a building or structure the interest in that building or structure to which person who incurred the expenditure was entitled when he incurred it;

"residue of expenditure" means the amount of the capital expenditure incurred in the construction of

a building or structure reduced by-

(a) the amount of any initial allowance made ;

(b) any annual allowance made;

(c) any balancing allowance granted; and in creased by any balancing charges made: