Finance Act, 1968
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Amount of diminished value of machinery and plant by reason of wear and tear. |
4.—(1) In this section— | |
“qualifying machinery or plant” means machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which on or after the 1st day of April, 1968, is provided for use for the purposes of a trade, profession, employment or office and which, at the time it is so provided, is unused and not secondhand, and includes any such machinery or plant notwithstanding any sale of it or other change of circumstances, but does not include ships and machinery or plant in respect of which an election has been made under the first proviso to section 241 (1) of the Income Tax Act, 1967 ; | ||
“value at the commencement of the year of assessment of machinery or plant” has the same meaning as in section 241 (7) of the Income Tax Act, 1967 . | ||
(2) Subject to the provisions of this subsection, where for any year of assessment a deduction falls to be allowed under section 241 of the Income Tax Act, 1967 , on account of wear and tear of any qualifying machinery or plant, the amount considered by the Appeal Commissioners to be just and reasonable under that section as representing the diminished value by reason of wear and tear during the year of that machinery or plant shall— | ||
(a) where it is an amount which does not exceed 8¾ per cent. of the value at the commencement of the year of assessment of such machinery or plant, be taken to be 10 per cent. of that value; | ||
(b) where it is an amount which exceeds 8¾ per cent. but is less than 15 per cent. of the value at the commencement of the year of assessment of such machinery or plant, be taken to be 12½ per cent. of that value; | ||
(c) where it is an amount which is 15 per cent. or more of the value at the commencement of the year of assessment of such machinery or plant, be taken to be 25 per cent. of that value. | ||
(3) Section 241 (1) of the Income Tax Act, 1967 , is hereby amended, in respect of qualifying machinery or plant, by the substitution for “a sum equal to five-fourths of the amount” of “a sum equal to the amount”. | ||
(4) In relation to a case in which subsection (2) has had effect, any reference in the Income Tax Acts to a deduction allowed under the said section 241 shall be construed as a reference to that deduction as determined pursuant to that section, as amended by this section, and subsection (2). |