OT30102 - Capital Gains

Drilling Expenditure. Amount for Deduction. Further Requirements.

To qualify for deduction, the expenditure must also have been:

• of a capital nature on scientific research;
• allowed under CAA90\s137 or allowable if a trade connected with that research had commenced before disposal; and
• the subject of an SRA recovery under CAA90\s138 or would have given rise to a recovery if a trade connected with that research had commenced before disposal.

TCGA92\s195(4) ensures that the capital gains deduction cannot exceed the amount of the actual, or deemed, SRA clawback.