CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 218

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Provided that notwithstanding anything in the foregoing the expression "industrial building or structure" does not include any building or structure in use as, or as part of, a dwelling house, retail shop, showroom, hotel or office or to any purpose ancillary to the purposes of a dwelling house, retail shop, showroom, hotel or office.

(2) The "relevant interest" means, in relation to any expenditure incurred on the construction of a building or structure the interest in that building or structure to which the person who incurred the expenditure was entitled when he incurred it.

(3) The "residue of expenditure" shall be the amount of the capital expenditure incurred in the construction of a building or structure reduced by-.

(i) the amount of any initial allowance made; and (ii) any annual allowance made; and

(iii) any balancing allowances granted;

and increased by any balancing charges made.

If, in the case of any year of assessment after that in which the building or structure is first used, no annual allowance falls to be made to any person in respect of the expenditure, then, subject to the provisions of this subsection, an amount equal to one-fiftieth of the expenditure shall be written off as at the end of the previous year of assessment.

Provided that--

(a) in the case of the year of assessment 1947/48 or any subsequent year of assessment this subsection shall not apply for any purpose if the building or structure was an industrial building or structure on the day preceding the the beginning of the year of assessment; and

(b) where this subsection does apply in the case of the year of assessment 1947/48 or any subsequent year of assessment, the amount to be written off shall, if the building or structure has been sold on or after the first day of April 1947 while an industrial building or structure, be the amount which would have fallen to be written off if-

(i) the building or structure had been an industrial building or structure in use on the said preceding day for the purposes of a trade or business carried on by a person entitled to the relevant interest in the building or structure; and

(ii) the basis period of that person for the year of assessment had ended on the said preceding day; and

(iii) the annual allowance had been made to him for the year of assessment accordingly.

Initial and

allowances,

or Plant.

38.

(1) Where, in or after the basis period for the year of assessment 1947/48 a person carrying on a trade, profession or business incurs capital expenditure on the provision of Machinery machinery or plant for the purposes of that trade, profession or business, there shall be made to him, for the year of assessment in the basis period for which the expenditure is incurred an allowance, to be known as an "initial allowance" equal to one-fifth of that expenditure.

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