Finance Act, 1991
|
Application of sections 264 and 265 of Income Tax Act, 1967, in relation to capital expenditure on refurbishment. |
26.—(1) Notwithstanding any other provision of the Tax Acts, where, on or after the 6th day of April, 1991, any capital expenditure has been incurred on the refurbishment of a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of the Income Tax Act, 1967 , sections 264 and 265 of the Income Tax Act, 1967 , shall have effect as if— | |
(a) in subsection (3) of the said section 264, and | ||
(b) in paragraph (i) of the proviso to subsection (1) of the said section 265, | ||
there were substituted “the capital expenditure on refurbishment of the building or structure was incurred” for “the building or structure was first used”. | ||
(2) (a) In this section “refurbishment” means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building or structure. | ||
(b) For the purposes of giving effect to the provisions of this section insofar as the computation of a balancing allowance or balancing charge (within the meaning of Chapter I of Part XVI of the Income Tax Act, 1967 ), as the case may be, is concerned, there shall be made all such apportionments as are, in the circumstances, just and reasonable. |