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Wear and tear allowance deemed to have been made in certain cases.
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279.—(1) In determining whether any, and if so what, balancing allowance or balancing charge falls to be made to or on any person for any year of assessment in charging the profits or gains of a trade, there shall be deemed to have been made to that person, for every previous year of assessment in which the machinery or plant belonged to him and which is a year of assessment to be taken into account for the purpose of this section, such wear and tear allowance or greater wear and tear allowance, if any, in respect of the machinery or plant as would have fallen to be made to him if all the conditions specified in subsection (3) had been fulfilled in relation to every such previous year.
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(2) There shall be taken into account for the purposes of this section every previous year of assessment in which the machinery or plant belonged to the person and—
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(a) during which the machinery or plant was not used by the person for the purposes of the trade,
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(b) during which the trade was not carried on by him,
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(c) during which the trade was carried on by him in such circumstances that, otherwise than by virtue of Chapter I of Part XXV, the full amount of the profits or gains thereof was not liable to be charged to income tax,
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(d) for which the whole or a part of the income tax chargeable in respect of the profits of the trade was not payable by virtue of Chapter II of Part XXV, or
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(e) for which the income tax payable in respect of the profits of the trade was reduced by virtue of Chapter III or Chapter IV of Part XXV.
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(3) The conditions referred to in subsection (1) are:
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(a) that the trade had been carried on by the person in question ever since the date on which he acquired the machinery or plant and had been so carried on by him in such circumstances that the full amount of the profits or gains thereof was liable to be charged to income tax,
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(b) that the trade had at no time consisted wholly or partly of exempted trading operations within the meaning of Chapter I of Part XXV,
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(c) that the machinery or plant had been used by him solely for the purposes of the trade ever since that date, and
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(d) that a proper claim had been duly made by him for wear and tear allowance in respect of the machinery or plant for every relevant year of assessment.
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(4) Nothing in this section shall affect the provisions of section 272 (4).
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