553 Interest charged to capital

This section deals with a case where a company incurs expenditure on the construction of a building, structure or other works and that expenditure is allowable as a deduction under section 552 in computing a gain on the disposal of the building, structure or works. In any such case, if the expenditure in question is met out of borrowed money, any interest on that borrowed money which accrued before the disposal is, to the extent to which the company has charged it to capital, allowed as a deduction in computing the gain on the disposal of the building, structure or works.

Relevant Date: Finance Act 2021