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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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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