Finance Act, 1989

Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967.

14.Section 254 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (7) (inserted by section 44 of the Finance Act, 1988 ) of the following subsection:

“(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1989, on the construction of a building or structure is made under this section for any chargeable period—

(a) no allowance in relation to that capital expenditure shall be made under section 264 for that chargeable period, and

(b) an allowance in relation to that capital expenditure which falls to be made under the said section 264 for any chargeable period subsequent to that chargeable period shall not be increased under section 25 of the Finance Act, 1978 .”.