BIM67495 - Waste disposal: Site preparation - calculation of relief - example 1
The following is an example of expenditure incurred on or after 6 April 1989.
EXAMPLE
Site preparation expenditure of £1,200 was incurred on a waste disposal site in the year to 31 December 1990. None of the expenditure qualified for capital allowances. The total capacity of the site was 800 cubic metres, and it was used as follows:
| Year to | Cubic metres |
| 31.12.90 | 100 |
| 31.12.91 | 300 |
| 31.12.92 | 400 |
| 800 |
The formula for relief is (A - B) x C / C + D where:-
A = the site preparation expenditure
B = amounts already allowed under Section 91B
C = volume of materials deposited in period of account
D = capacity of site unused at end of period of account.
Year to 31.12.90
In the formula
A = £1,200
B = Nil
C = 100 cubic metres
D = 700 cubic metres
| Relief = £1,200 x | £100 | = £150 |
| £100 + £700 |
Year to 31.12.91
In the formula
A = £1,200
B = £150
C = 300 cubic metres
D = 400 cubic metres
| Relief = (£1,200 - £150) x | £300 | = £450 |
| £300 + £400 |
Year to 31.12.92
In the formula
A = £1,200
B = £150 + £450 = £600
C = 400 cubic metres
D = Nil
| Relief = (£1,200 - £600) x | £400 | = £600 |
| £400 |
