BIM55270 - Farming: receipts and expenses: land drainage expenditure: SP5/81

Land that in the past was reasonably well drained but subsequently become wholly or partly waterlogged because the maintenance of efficient drainage was uneconomic is sometimes made available for cultivation by the restoration of drainage or by re-draining. In such cases so much of the net expenditure incurred (after crediting any grants receivable) as restores the drainage to its effective state may be admitted as revenue expenditure in farm accounts. This excludes:

• any substantial element of improvement - for example, the substitution of tile drainage for mole drainage, and
• the capital element in cases in which the present owner is known to have acquired the land at a depressed price because of its swampy condition (see BIM46900 onwards).