BIM67495 - Waste disposal: site preparation: calculation of relief: example
Site preparation expenditure of £1,200 was incurred on a waste disposal site in the year to 31 December 2010. None of the expenditure qualified for capital allowances. The total capacity of the site was 800 cubic metres, and it was used as follows:
Year to | Cubic metres |
---|---|
31.12.10 | 100 |
31.12.11 | 300 |
31.12.12 | 400 |
800 |
The formula for relief is RE x WD / SV + WD where:
RE = the site preparation expenditure less any amount previously deducted
WD = volume of materials deposited in period of account
SV = volume of site unused at end of period of account.
Year to 31.12.10
In the formula
RE = £1,200
WD = 100 cubic metres
SV = 700 cubic metres
Relief = £1,200 x £100 / £100 + £700 = £150
Year to 31.12.11
In the formula
RE = £1,200 - £150 = £1,050
WD = 300 cubic metres
SV = 400 cubic metres
Relief = £1,050 x £300 / £300 + £400 = £450
Year to 31.12.12
In the formula
RE = £1,200 - £150 - £450 = £600
WD = 400 cubic metres
SV = Nil
Relief = £600 x £400 / £400 = £600