Inland Revenue.
(c) "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.
For the purpose of computing the residue of expenditure there shall be written off an amount of one fiftieth of the expenditure in respect of any year in which no initial or annual allowance falls to be made.
[CAP. 112 3 of 1949, s.12.]
[37]
37. (1) Where a person carrying on a trade, profession or business incurs capital expenditure on the provision of 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.
(2) Where at the end of the basis period for any year of assessment a person has in use machinery or plant for the purpose of his trade, profession or business there shall be made to him in respect of that year of assessment an allowance to be known as an "annual allowance" for depreciation by wear and tear of those assets. The allowance shall be calculated at the rates prescribed by the Board of Inland Revenue and shall be computed on the reducing value of the asset, which shall be the original cost of the asset reduced by-
(a) any initial allowance granted in accordance with the provisions of this section; and
(b) by the annual allowances made under the provisions of this section:
Provided that-
(a) where the asset was acquired before the basis period in respect of the year of assessment 1947/48 the value at the end of the basis period shall be computed by deducting from the amount paid for the asset by its present owner annual allowances as if this
321 Schedule.
Inland Revenue.
(c) "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.
For the purpose of computing the residue of expenditure there shall be written off an amount of one fiftieth of the
[CAP. 112
expenditure in respect of any year in which no initial or 3 of 1949, s.12. annual allowance falls to be made.
[37]
annual
machinery
37. (1) Where a person carrying on a trade, profession Initial and or business incurs capital expenditure on the provision of allowances, machinery or plant for the purposes of that trade, profession or plant." or business, there shall be made to him, for the year of 30 of 1950, 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.
(2) Where at the end of the basis period for any year of assessment a person has in use machinery or plant for the purpose of his trade, profession or business there shall be made to him in respect of that year of assessment an allowance to be known as an "annual allowance" for depreciation by wear and tear of those assets. The allowance shall be calculated at the rates prescribed by the Board of Inland Revenue and shall be computed on the reducing value of the asset, which shall be the original cost of the asset reduced by-
(a) any initial allowance granted in accordance with the
provisions of this section; and
(b) by the annual allowances made under the provisions
of this section:
Provided that-
(a) where the asset was acquired before the basis period in respect of the year of assessment 1947/48 the value at the end of the basis period shall be computed by deducting from the amount paid for the asset by its present owner annual allowances as if this
321
Schedule.
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