Explanatory Notes

Capital Allowances Act 2001

2001 CHAPTER 2

22nd March 2001

Commentary on Sections

Glossary

Part 5: Mineral extraction allowances
Chapter 7: Supplementary provisions
Section 433: Treatment of demolition costs

1482.This section is based on sections 103 and 161(2) of CAA 1990. It allows net demolition costs to be added to the qualifying expenditure concerned in calculating the balancing allowance or balancing charge arising on the demolition of an asset representing qualifying expenditure.

1483.Subsection (3) stops the cost of demolition from being relieved more than once.