26 Demolition costsU.K.
(1)This section applies if—
(a)plant or machinery is demolished, and
(b)the last use of the plant or machinery was for the purposes of a qualifying activity.
(2)If the person carrying on the qualifying activity replaces the plant or machinery with other plant or machinery then, for the purposes of this Part, the net cost of the demolition to that person is treated as expenditure incurred on the provision of the other plant or machinery.
(3)If the person carrying on the qualifying activity does not replace the plant or machinery, the net cost of the demolition to that person is allocated to the appropriate pool for the chargeable period in which the demolition takes place.
(4)In subsection (3)—
“the appropriate pool” means the pool to which the expenditure on the demolished plant or machinery has been or would be allocated in accordance with this Part, and
“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 plant or machinery.
(5)Subsection (3) is subject to section 164(4) ([F1general decommissioning expenditure] before cessation of ring fence trade: election for special allowance) [F2and sections 165A to 165E (restrictions on allowances: anti-avoidance).]
Textual Amendments
F1Words in s. 26(5) substituted (with effect in accordance with s. 109(7) of the amending Act) by Finance Act 2008 (c. 9), Sch. 34 para. 3
F2Words in s. 26(5) inserted (with effect in accordance with Sch. 32 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 32 para. 3