Finance Act, 1988
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Amendment of section 26 (increase of wear and tear allowances for certain machinery and plant) of Finance Act, 1971. |
47.— Section 26 (inserted by the Corporation Tax Act, 1976 ) of the Finance Act, 1971 , is hereby amended by the substitution for subsection (2) of the following subsection: | |
“(2) (a) Subject to the provisions of this section, where for any chargeable period an allowance falls to be made under section 241 of the Income Tax Act, 1967 , for wear and tear of any qualifying machinery or plant, the allowance shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made; and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as increased under this subsection. | ||
(b) As respects any machinery or plant provided for use on or after the 1st day of April, 1988, any allowance made under section 241 of the Income Tax Act, 1967 , and increased under paragraph (a) of this subsection, in respect of that machinery or plant, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed— | ||
(i) if the machinery or plant is provided for use before the 1st day of April, 1989, 75 per cent., or | ||
(ii) if the machinery or plant is provided for use on or after the 1st day of April, 1989, 50 per cent., | ||
of the capital expenditure incurred on the provision of that machinery or plant.”. |