Finance Act 1959

Section 21.

FOURTH SCHEDULE Amendments consequential on restoration of investment allowances

The Income Tax Act, 1952 (15 & 16 Geo. 6 & 1 Eliz. 2. c. 10)

1 In subsection (1) of section two hundred and sixty-five, for the words " three-twentieths " there shall be substituted the words " one-twentieth ".

2 In subsection (1) of section two hundred and seventy-nine, for the words " three-tenths " there shall be substituted the words " one-tenth ".

3 In section three hundred and six, for the words " two-fifths " there shall be substituted the words " one-fifth ".

4 In sub-paragraph (2) of paragraph 3 of the Fourteenth Schedule, for the words " seven-tenths " in each place where they occur there shall be substituted the words " nine-tenths ".

The Finance Act, 1954 (2 & 3 Eliz. 2. c. 44)

5 In section sixteen—

(a) in subsections (2) to (4), for the words " instead of an initial allowance " in each place where they occur there shall be substituted the words " in addition to an initial allowance ";

(b) in subsection (2), for the words " shall apply instead " there shall be substituted the words " shall apply also ";

(c) in subsection (8), for the words " the withholding of initial allowances" there shall be substituted the words " the reduction of initial allowances ";

(d) the following shall be inserted after subsection (9)—

“(9A) Subject to that Schedule, where it is provided by this section that an investment allowance shall be made in addition to an initial allowance, no greater initial allowance shall be made by reason that an investment allowance is for any reason not made.”

6 The following shall be substituted for sub-paragraph (4) of paragraph 1 of the Second Schedule—

“(4) Where an investment allowance in respect of any expenditure is withheld or withdrawn under this paragraph then—

(a) if it is withheld or withdrawn by reason of a sale or transfer such initial allowance (if any) as might have been made in addition to the investment allowance if it had not been withheld or withdrawn shall be made, or

(b) if it is withheld or withdrawn otherwise than by reason of a sale or transfer such initial allowance (if any) as might have been made in respect of the said expenditure but for section sixteen of this Act and section twenty-one of the Finance Act, 1959 shall be made.”

7 In relation to a sale of machinery or plant after the seventh day of April, nineteen hundred and fifty-nine, paragraph 2 of the Second Schedule shall have effect as if, for the words from " the buyer shall not be entitled " to the end of the paragraph there were substituted the words " the amount of the initial allowance (if any) to which the buyer is entitled shall be reduced by two-thirds, unless the investment allowance is withheld or withdrawn under the foregoing paragraph or the initial allowance is reduced in accordance with the provisions of the Fourteenth Schedule to the Income Tax Act, 1952 ".

The Finance Act, 1958 (6 & 7 Eliz. 2. c. 56.)

8 Subsection (3) of section fifteen shall not have effect.