Income Tax (Trading and Other Income) Act 2005 section 315

Deduction for expenditure on sea walls

Section 315 provides a tax deduction for property owners or tenants who spend money building a sea wall or embankment to protect their let premises from flooding by the sea or a tidal river.

• Owners or tenants of let premises who build a sea wall or embankment to protect against sea or tidal river flooding can claim a tax deduction against their property business profits
• The total expenditure is spread equally over 21 years — the year the cost is incurred plus the following 20 tax years — with one twenty-first (1/21) deducted each year
• No deduction is available where a capital allowance has already been claimed for the same expenditure
• If the property interest is transferred to another person, the right to the remaining deductions passes to the new owner or tenant under section 316, and for businesses using the cash basis, expenditure is treated as incurred when it is actually paid