CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 60

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Chapter II

Depreciation, Etc.

35. (1) where in or after the basis period for the year

of assesment 1947/48 a person incurs capital expenditure on

construction of a building or structure which is to be

an industrial building or structure occupied for the purposes

of a trade there shall be made to the person who incurred

the expenditure for the year of assessment in the basis

period for which the expenditure was incurred an allowance

to be known an "initial allowance" equal to one-tenth

thereof.

(2) (a) Where any person is at the end of the basis

period for any year of assessment, entitled to an interest

in a building or structure which is an industrial building

or structure and where that interest is the relevant interest

in relation to the capital expenditure incurred on the

construction of that building or structure an allowance, to

be known as an "anmal allowance" equal to one-fiftieth of

that expenditure shall be made to him for that year of

assessment,

(b) Where at any time in or after the basis

period for the year of assessment 1947/48 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 anmual

allowance, in the years of assesment the basis periods for

which end after the time of that sale, shall be computed by

reference to the residual value of that expendi ture

imoediately after the sale and shall be the fraction of the

said residue the mmerator of which is one 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

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