[F1340 Treatment of demolition costsU.K.
(1)This section applies if—
(a)a building is demolished, and
(b)the person to or on whom any balancing allowance or balancing charge is or might be made is the person incurring the cost of the demolition.
(2)The net cost of the demolition is added to the residue of qualifying expenditure immediately before the demolition.
(3)“The net cost of the demolition” means the amount, if any, by which the cost of the demolition exceeds any money received for the remains of the property.
(4)If this section applies, neither the cost of the demolition nor the net cost of the demolition is treated for the purposes of any Part of this Act other than Part 10 (assured tenancy allowances) as expenditure on any other property replacing the property demolished.]
Textual Amendments
F1Pt. 3 omitted (with effect in relation to chargeable periods beginning on or after 1.4.2011 for corporation tax purposes and 6.4.2011 for income tax purposes in accordance with ss. 84(1)(3)(4), 85, 86 of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 84(2) (with Sch. 27)