Part 3

Trading income
Chapter 9

Trade profits: other specific trades

Cemeteries and crematoria: interests in land

Deduction for capital expenditure
147
1
This section applies if, in the relevant period, an interest in land in the cemetery or memorial garden is sold with a view to the land being used—
a
for the purpose of interments, or
b
for memorial garden plots.
2
A deduction is allowed for—
a
capital expenditure incurred by the trader, or a predecessor, on the purchase of an interest in the land or on the preparation of the land, and
b
ancillary capital expenditure allocated to the relevant period under section 148 (allocation of ancillary capital expenditure).
3
But no expenditure is to be brought into account—
a
under both paragraphs (a) and (b) of subsection (2), ...
b
under both subsection (2)(a) above and section 170(2)(b) of ITTOIA 2005 (relief for income tax purposes) or under both subsection (2)(b) above and section 170(2)(a) of ITTOIA 2005, or
c
under both subsection (2)(b) above and section 149B(4), 149C(4) or 149D(3).
whether for the same or different periods of account.
4
Any purchase price paid on a sale in connection with a change in the persons carrying on the trade is ignored in calculating the amount of the deduction.
5
No deduction is allowed for any expenditure which is excluded by section 149 (exclusion of expenditure met by subsidies).
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)
Word in s. 147(3)(a) omitted (1.3.2012) by virtue of The Enactment of Extra-Statutory Concessions Order 2012 (S.I. 2012/266), arts. 1, 5(3)(a) (with art. 5(5))
S. 146 crossheading substituted (1.3.2012) by The Enactment of Extra-Statutory Concessions Order 2012 (S.I. 2012/266), arts. 1, 5(2) (with art. 5(5))
S. 147(3)(c) and word inserted (1.3.2012) by The Enactment of Extra-Statutory Concessions Order 2012 (S.I. 2012/266), arts. 1, 5(3)(b) (with art. 5(5))