Section 149B — Corporation Tax Act 2009: Allowable deductions: niches

Allowable deductions: niches 149B 1 This section sets out the deductions that are allowed in respect of a niche if proceeds from the sale of the niche are brought into account as a receipt in calculating the profits of the trade.

2 A deduction is allowed for two-thirds of the costs incurred (by the trader or a predecessor) in the formation of the niche.

3 Formation of the lining and of any tablet associated with the niche is taken to be part of the formation of the niche.

4 If the niche is in a building that is used wholly or mainly for the purpose of providing niches, a further deduction is allowed for two-thirds of the associated building costs.

5 In relation to a niche in a building—

a “the associated building costs” is the relevant proportion of the costs of the building, and b “the relevant proportion” is the proportion that the area occupied by the niche bears to the area of the building as a whole or, if the proportion cannot reasonably be calculated on that basis, such proportion as may be calculated on a just and reasonable basis.