»Ê¹ÚÌåÓýapp

In March 2005, Mr T buys a plot of land for £200,000 (including expenses). This does not form part of a garden within TCGA92/S222. He lays out on it a tennis court at a cost of £5,000. In April 2010, he does away with the tennis court and builds in its place a swimming pool at a cost of £15,000. In February 2012 he sells the land for £250,000 (after deduction of expenses).

»Ê¹ÚÌåÓýapp £5,000 which he spent on the tennis court is not allowable because it is not reflected in the state of the land on its disposal. »Ê¹ÚÌåÓýapp computation is therefore as follows:

Net sale proceeds £250,000

Less Cost of land £200,000

Cost of swimming pool £15,000 £215,000

Capital Gain £35,000

NOTE: »Ê¹ÚÌåÓýapp demolition of a tennis court is not the entire loss, destruction, dissipation or extinction of an asset' within TCGA92/S24 (1), see CG13120+, because it is not an assetâ€�: it is only part of an asset, the land. And it is not within Section 24(3), see CG15770+ because it is not a building or a structure in the nature of a building.