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EZ 21: Sections EE 45 and EE 47: permanent removal: allowance before 1 April 1995
or “Tax rules for items with special allowances that are no longer used or moved overseas before April 1995”
You could also call this:

“Rules for calculating depreciation on pre-1995 assets”

If you owned something before 1 April 1995 and could have claimed depreciation on it in the 1992-93 tax year, there are special rules for working out its value. The ‘base value’ is how much the item was worth in your tax records for the 1992-93 year.

You can claim depreciation for things you bought before 1995 if you were allowed to under the old tax laws. This includes items you claimed for under sections 108 to 108N or section 113A of the old Income Tax Act 1976, or any other part of that Act.

If you couldn’t claim depreciation for something in the 1992-93 tax year under section 108 of the old Act, there are different rules for working out its value now.

When you’re working out how much depreciation you’ve claimed in total, you need to include any amounts you claimed under section 117(5) of the old Income Tax Act 1976.

These rules help you figure out the right values to use when you’re calculating depreciation under section EE 56 of the current tax law.

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Next up: EZ 23: Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005

or “How to calculate depreciation rates for older property and equipment”
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Part E Timing and quantifying rules
Terminating provisions

EZ 22Base value and total deductions in section EE 56: before 1 April 1995

  1. For the purposes of section EE 56 (Formula), this subsection applies when a person could have been allowed a deduction for depreciation for an item under section 108 of the Income Tax Act 1976 for the 1992–93 income year and they have owned the item continuously since the 1992–93 income year. Base value is the amount at which the item was recorded in the person’s accounts for taxation purposes for the 1992–93 income year.

  2. For the purposes of section EE 57(3)(d) (Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies),—

  3. the expenditure is expenditure for which a person has been allowed a deduction for depreciation under any of sections 108 to 108N or section 113A of the Income Tax Act 1976; or
    1. the expenditure is expenditure for which a person has been allowed a deduction for depreciation under any other provision of the Income Tax Act 1976.

      1. For the purposes of section EE 58(1)(e)(ii) (Base value in section EE 56 when no previous deduction), the item is one for which the person could not have been allowed a depreciation deduction under section 108 of the Income Tax Act 1976 for the 1992–93 income year.

      2. For the purposes of section EE 60(2)(c) (Total deductions in section EE 56), the provision is section 117(5) of the Income Tax Act 1976.

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