Clause 27

by inserting, immediately after subsection (1D), the following subsections:“(1E) Despite subsection (1), where a person carrying on a trade, profession or business incurs, during the basis period for the year of assessment 2021, capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, the person may, in lieu of the allowances under subsection (1) or section 19, elect to be entitled to the following:

for the year of assessment 2021 — an annual allowance of 75% in respect of the capital expenditure incurred;

for the year of assessment 2022 — an annual allowance of 25% in respect of the capital expenditure incurred.(1F) The election in subsection (1E) must be made at the time of lodgment of the person’s return of income for the year of assessment 2021, and such election is irrevocable.(1G) Where a person carrying on a trade, profession or business enters into a hire-purchase agreement during the basis period for the year of assessment 2021 in respect of machinery or plant provided for the purposes of that trade, profession or business, subsection (1E) applies, with the necessary modifications, to each instalment paid by the person under the hire-purchase agreement in a basis period for a year of assessment (whether the year of assessment 2021 or a subsequent year of assessment), as it applies to capital expenditure incurred in the basis period for the year of assessment 2021.”;

by deleting the words “or (1B)” wherever they appear in subsections (2), (3), (4), (5), (7), (8), (10A) and (10B) and substituting in each case the words “, (1B) or (1E)”; and

by inserting, immediately after the words “Sixth Schedule” in subsections (2FA)(a)(ii) and (2G)(a)(ii), the words “or as elected by the person under section 19(2AB)”.