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(1) All capital allowance expenditure of a petroleum operation or mineral and mining operation shall be put into a separate pool and capital allowance granted in accordance with Parts II and III of the Fifth Schedule.

(2) Capital allowance shall be calculated in accordance with the steps set out in the Fifth Schedule.

(3) For purposes of subsection (3) of section 14 of the Act, capital allowance granted to a person for a year of assessment shall be deducted to arrive at the chargeable income of that person or the loss to be carried forward in accordance with section 17 of the Act.

(4) Where a person uses depreciable assets in the production of income which is exempt from tax

(a) that person is granted capital allowance under the Fifth Schedule; and

(b) the allowances shall be deducted in ascertaining the income, and where the assets are subsequently used by that person in the production of income which is not exempt from tax, only the written down value of the pool or written down value of the asset, as the case requires, shall be used in calculating capital allowance granted to that person in respect of the subsequent use.

(5) For the purpose of this regulation and the Third Schedule to the Act, a person shall maintain a fixed assets register as prescribed under Generally Accepted Accounting Principles.