Part 3

Industrial buildings allowances
Chapter 8

Writing off qualifying expenditure

Treatment of demolition costs
340
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.