Commentary

C2.903 Enhancement expenditure

Capital gains tax
Capital gains tax | Commentary

C2.903 Enhancement expenditure

Capital gains tax | Commentary

C2.903 Enhancement expenditure

Expenditure in respect of a wasting asset which would be allowable under TCGA 1992, s 38(1)(b)1 is written off at a uniform rate over the period which begins when the expenditure is first reflected in the state or nature of the asset and ends on expiry of the predictable life of the asset2.

In a case where there is additional expenditure enhancing the value of the asset, the proportion of that additional expenditure to be excluded is as follows3

where—

L and T(1)are defined as in C2.902; and
T(2)is the period between the time when

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