Capital Allowances Act 1990 (repealed) (c. 1)

Part II U.K. Machinery and Plant

Modifications etc. (not altering text)

C1 Pt. II (ss. 22–83) modified by Finance Act 1990 (c. 29, SIF 63:1), s. 87(3)(4)

Chapter VII U.K. Miscellaneous Expenditure

62 Treatment of demolition costs. U.K.

(1) Where any machinery or plant which is in use for the purposes of a trade is demolished, then—

(a) if the person carrying on the trade replaces the machinery or plant by other machinery or plant, the net cost to him of the demolition shall be treated for the purposes of this Part as expenditure incurred by him on the provision of that other machinery or plant, and

(b) if the person carrying on the trade does not replace the machinery or plant [F1 then, subject to section 62A], his qualifying expenditure for the chargeable period related to the demolition shall be treated for the purposes of sections 24 and 25 as increased by the net cost to him of the demolition.

(2) In this section any reference to the net cost of the demolition of any machinery or plant is a reference to the excess, if any, of the cost of the demolition over any moneys received for the remains of the machinery or plant.

Textual Amendments

F1 Words inserted by Finance Act 1990 (c. 29), s. 60