Corporation Tax Act 2009 section 254

Deduction for expenditure on sea walls

Section 254 provides relief for owners or tenants who spend money building sea walls or embankments to protect their let premises from coastal or tidal flooding, allowing the cost to be spread over 21 years as a deduction against property business profits.

• An owner or tenant who incurs expenditure on a sea wall or embankment to protect premises from the sea or a tidal river may claim a tax deduction against the profits of the property business carried on in relation to those premises.
• The expenditure is spread evenly over 21 tax years (the year the cost is incurred plus the following 20 years), with 1/21 of the total expenditure deducted in each year.
• Where the deduction period spans more than one accounting period within a tax year, the annual deduction is apportioned between those accounting periods, but no part is allocated to any accounting period ending before the expenditure is incurred or, in transfer cases, before the transfer takes place.
• No deduction is available under this section for any expenditure in respect of which a capital allowance has already been claimed.