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HMRC internal manual

Capital Allowances Manual

HM Revenue & Customs
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Plant and Machinery Allowances (PMA): buildings and structures: demolition costs


This is how you deal with the net demolition costs of plant and machinery where its last use was for the purposes of a qualifying activity. Either:

  • add them to the cost of the new plant if the plant is replaced, or
  • add them to the qualifying expenditure for the chargeable period related to the demolition if the plant is not replaced.


The net demolition costs are the costs of demolition less any money received for the remains of the asset or any insurance receipts.