Section 172ZB | Allowable deductions: niches ^F1

(1)This section sets out the deductions that are allowed in respect of a nicheif 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.