Commentary

B3.422 Demolition costs

Business tax
Business tax | Commentary

B3.422 Demolition costs

Business tax | Commentary

B3.422 Demolition costs

When demolition expenditure is incurred on an asset representing qualifying expenditure, the net cost of demolition is added to the qualifying expenditure in determining the amount of any balancing allowance or charge for the chargeable period in which the demolition occurs1. The net cost is the excess of the cost of demolition over any sums received for the remains of the asset2.

Where demolition costs are taken into account in this way, they cannot also be treated as expenditure on any asset replacing the demolished asset3.

As regards the cost of

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