BIM47301 - Specific deductions: security expenditure: overview

FA89/S112 allows a deduction in computing profits or gains for expenditure of a revenue nature made with the sole intention of meeting a special security threat arising from a trade, profession or vocation carried on by individuals (either alone or in a partnership of individuals) if:

• the revenue expenditure is incurred in connection with providing an individual with security assets or security services, or with the use of such assets or services (see BIM47310),

and

• all the qualifying conditions are met (see BIM47305).

Relevant facts needed to establish that a deduction is due include:

• Full details of the nature of the trade, profession or vocation.
• A description of the special threat to the individual's security indicating how it arises and why it is considered to arise wholly or mainly by virtue of the particular trade.
• Details of the nature of the expenditure incurred on the security asset or of the security service, and, where it is not obvious, an explanation of how these are considered to improve the individual's personal physical security. (Any other security arrangements in force such as police protection should be mentioned.)
• Whether the expenditure on the asset or service is intended solely to improve personal physical security.
• If the expenditure is only partly to improve personal physical security, the relative proportions of the security and non-security aspects.

If information is obtained about personal security arrangements appropriate steps should be taken to keep that information secure and confidential.