Income Tax (Trading and Other Income) Act 2005 section 172ZD

Allowable deductions: inscriptions

Section 172ZD sets out the deductions that a trader may claim in respect of inscriptions where the proceeds from making those inscriptions are brought into account in calculating trade profits.

• The costs of making an inscription, whether incurred by the current trader or a predecessor, are deductible against trade profits.
• Where an inscription is added to an existing framework designed to hold multiple inscriptions, an additional deduction of two-thirds of the associated framework costs is allowed.
• Associated framework costs are calculated by dividing the total framework cost by the number of inscriptions it is designed to hold, and may also include a proportionate share of the cost of any building used wholly or mainly for accommodating memorials.
• These deductions do not apply where the inscription is made as part of producing a memorial, which is dealt with separately under section 172ZC.