Initial depreciation for new machinery: additional deduction in year of installation, restricted if used for less than the threshold period.

Initial depreciation allows an additional deduction for manufacturers for qualifying new 'Machinery and Plant' assets that are unused previously, not installed in office or residential premises, and whose full cost has not been deducted; the allowance is based on actual cost and claimed in the year the asset is installed and used for business, but is halved if the asset is acquired and used for business for less than the statutory short use period in that year.

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