Income Tax Act, 1967.

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Chapter III

Allowances for Capital Expenditure on the Purchase of New Ships

Shipping investment allowances.

246.—(1) Where a person carrying on a trade incurs capital expenditure on the purchase of a new ship for the purposes of the trade, there shall be made to him, for the year of assessment in the basis period for which the expenditure is incurred, an allowance (in this Chapter referred to as a shipping investment allowance) equal to two-fifths of the expenditure, and such allowance shall be made as a deduction in charging the profits or gains of the trade and shall be in substitution for and not in addition to an initial allowance under Chapter I of Part XV:

Provided that this subsection shall not apply to any expenditure incurred before the 6th day of April, 1957.

(2) For the purposes of this Chapter, the day on which any expenditure is incurred shall be taken to be the day when the sum in question becomes payable.

(3) Any claim by a person for an allowance under this section in charging the profits or gains of his trade shall be included in the annual statement required to be delivered under this Act of the profits or gains thereof and shall be accompanied by a certificate signed by the claimant, which shall be deemed to form part of the claim, stating that the expenditure was incurred on the purchase of a new ship and giving such particulars as show that the allowance falls to be made.

(4) In this section and the subsequent sections of this Chapter “new” means unused and not secondhand.