Commentary

B5.655 Concerns where profits arise out of land—waterworks

Business tax
Business tax | Commentary

B5.655 Concerns where profits arise out of land—waterworks

Business tax | Commentary

B5.655 Concerns where profits arise out of land—waterworks

The cost of replacing a reservoir by another of improved type and capacity on another site was held to be capital expenditure, and not allowable as a deduction1.

In Shaw v Lichfield Conduit Lands Trustees2, where waterworks were carried on by a charity, where a reservoir was owned by a charity and provided a water supply to a city at only a nominal charge, and where three-quarters of the expense of the undertaking was met from endowment income, it was held that the waterworks were not a concern

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