Corporation Tax Act 2009 section 149B

Allowable deductions: niches

Section 149B sets out the deductions that crematoria businesses may claim against their trading profits when they sell niches for the storage of cremated remains.

• When proceeds from selling a niche are treated as a trading receipt, a deduction of two-thirds of the niche formation costs is allowed
• Formation costs include the niche itself, its lining, and any associated tablet
• Where the niche is in a building used wholly or mainly for providing niches, a further deduction of two-thirds of the associated building costs is allowed
• Associated building costs are calculated as the proportion of the building area occupied by the niche, determined on a just and reasonable basis