Amendment
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(d) by the deletion of paragraph (b) of subsection (2) and the sub-
stitution therefor of the following--
"(8) Where the interest in a building or structure, which is the relevant interest in relation to any expenditure, is sold while the building or structure is an industrial building or structure the annual allowance, in the years of assessment the basis periods for which end after the time of that sale shall be computed by reference to the residue of expenditure immediately after the sale and shall be the fraction of the said residue the numerator of which is two, where the building or structure was first used before the com- mencement of the basis period for the year of assessment commencing on the 1st day of April, 1963, and one, where the building or structure was first used on or after the commencement of such basis period. and the denominator of which is the number of years of assessment comprised in the period which—
(1) begins with the first year of assessment for which the buyer is entitled to an annual allowance or would be so entitled if the building or structure had at all material times continued to be an industrial building or structure; and
(ii) ends with the year of assessment which, where the building or structure was first used before the commencement of the basis period for the year of assessment commencing on the 1st day of April, 1965, is the fiftieth year after the year in which the building or structure was first used, and, where the building or structure was first used on or after such basis period, is the twenty-fifth year after the year of assessment in which the building or structure was first used, and so on for any subsequent sales.”.
18. Subsection (1) of section 35 of the principal Ordinance is of section 35. amended by the deletion of the proviso thereto and the substitution
therefor of the following-
"Provided that no balancing allowance shall be made to any person where the building or structure is demolished for purposes unconnected with or not in the ordinary course of conduct of the trade or business for the purposes of which the building or struc- ture was used in circumstances qualifying for annual allowances under section 34.".
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19. Section 37 of the principal Ordinance is amended— (a) by the insertion, after the word and comma "business," in
subsection (1), of the following-
"then, except where such expenditure is expenditure of a kind described in paragraph (b) of subsection (I) of section 16B.";
(b) by the deletion, in subsection (2), of the word "original": (c) by the deletion, in paragraph (a) of subsection (2), of the word "granted" and the substitution therefor of the following-
"computed";
(d) by the deletion, in paragraph (b) of subsection (2), of the word
"made" and the substitution therefor of the following-
"computed"; and
(e) by the insertion, after subsection (2), of the following new
subsection-
Amacadment.
of section 37.
*(3) Nothing in subsection (2) shall apply in respect of any machinery or plant owned and used by a person for the purposes of his trade or business where such machinery or plant represents scientific research expen- diture of a capital nature which pursuant to paragraph (b) of subsection (1) of section 16B has been allowed as a deduction in ascertaining the profits from such trade or business in respect of which such person is chargeable to tax under Part IV for any year of assessment.”.
20. Section 37A of the principal Ordinance is amended- (a) by the insertion, after the word "business" where it occurs for 174.
the second time in subsection (I), of the following-
"then, except where such expenditure is expenditure of
a kind described in paragraph (b) of subsection (1) of section 16B,*:
(b) by the deletion, in subsection (3), of the word "granted" and
the substitution therefor of the following-
"computed"; and
(c) by the insertion, after subsection (3), of the following new
subsection-
"(4) Nothing in subsection (2) shall apply in respect of any machinery or plant used by a person for the pur- poses of his trade or business where such machinery or plant represents scientific research expenditure of a cap- ital nature which pursuant to paragraph (5) of subsection
Amendment of section
No comments yet.
Private notes are available after approval.