Income Tax (Trading and Other Income) Act 2005 section 169

Cemeteries and crematoria: introduction

Section 169 introduces special rules for calculating the trading profits of businesses that operate cemeteries or crematoria with memorial gardens, and defines key terms used in sections 170 to 172.

• The rules apply to trades that include operating a cemetery, or operating a crematorium together with maintaining memorial garden plots.
• Selling land in a cemetery includes selling a right of interment; selling land in a memorial garden includes appropriating part of the garden in return for a dedication fee or similar payment.
• A special deduction is available for "ancillary capital expenditure" — capital spending on non-residential buildings, structures, or land in the cemetery or memorial garden that will have little or no value once the site is full, including expenditure incurred by a previous owner of the trade.
• Land "preparation" covers levelling, draining, or otherwise making the land suitable for use as a cemetery or memorial garden.