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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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RDA: Demolition costs

CAA01/S445

If a RDA asset is demolished by its owner deduct the demolition costs from the disposal value.

If the demolition costs are more than the disposal value and the asset had not begun to be used for something other than research and development before the demolition give RDA equal to the excess.

Do not treat the demolition costs as expenditure on an asset that replaces the asset demolished.