Taxation of Chargeable Gains Act 1992 section 50

Expenditure reimbursed out of public money

Section 50 deals with the treatment of expenditure that has been reimbursed or funded by public money when computing a chargeable gain.

• Any expenditure met directly or indirectly by the Crown, any government, or any public or local authority must be excluded from the computation of a chargeable gain.
• This rule applies regardless of whether the public funding comes from a United Kingdom body or from an authority elsewhere in the world.
• The exclusion covers expenditure that has already been reimbursed as well as expenditure that is expected to be reimbursed in the future.
• Where a public grant is subsequently repaid, Extra-Statutory Concession D53 provides that the repaid amount is treated as reducing the disposal consideration rather than being added back to allowable expenditure.