BIM67480 - Waste disposal: Site preparation - calculation of relief

Where site preparation expenditure was incurred on a particular site on or after 6 April 1989, the amount available for relief for any period of account is calculated by a formula the purpose of which is to allow only as much of the qualifying expenditure as relates to the proportion of the total site capacity utilised in the period. The formula for calculating the relief for any period is (A -B) x C / C + D where:-

A is the site preparation expenditure incurred by the trader on the site at any time before or during the period in question. However, it does not include-

• • expenditure already allowed as a deduction for any previous period of account. This does not include expenditure allowed under ICTA88/S91B (which is included in B in the formula). This is because subsection (2) gives relief for an 'allowable amount' rather than for expenditure as such.
  • expenditure qualifying for capital allowances.

B is the total amounts allowed under Section 91B in previous periods of account in respect of expenditure on the site.

C is the volume of waste materials deposited on the site during the period of account. The volume in question means the final net volume of the waste when compacted.

D is the capacity of the site not used up for the deposit of waste materials at the end of the period of account.