Corporation Tax Act 2009 section 149E

Costs of the building

Section 149E sets out how to determine the costs of a building (or other structure) for the purpose of calculating allowable deductions for niches, memorials, and inscriptions in the context of trades such as cemetery and crematorium operations.

• For an acquired building, the cost is the lower of market value at acquisition and the actual acquisition cost, excluding the cost of the land
• For a constructed building, the cost is the construction costs incurred, again excluding the land element
• Subsequent capital construction costs such as renovations or extensions are added, but ongoing maintenance costs are excluded
• Costs already deducted as capital expenditure under separate provisions cannot also be included as costs of the building