Capital Allowances Act 2001 section 393S

Treatment of demolition costs

Section 393S sets out how demolition costs are treated for the purposes of calculating capital allowances on structures and buildings.

• When a structure or building is demolished, the costs of demolition are treated as part of the qualifying expenditure on the asset for capital allowances purposes.
• This provision ensures that demolition costs are not simply lost but are brought into the capital allowances computation.
• The treatment applies to structures and buildings that qualify under the structures and buildings allowance regime.
• The provision was introduced by Finance Act 2012, Schedule 39, paragraph 37, as part of broader reforms to the capital allowances rules.

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