CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 67

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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.