DO 11 Improvement destroyed or made useless
When this section applies

(1)

This section applies when, in an income year of a person,—

(a)

the person owns land, or operates a business on land, to which an improvement described in schedule 20 (Expenditure on farming, horticultural, aquacultural, and forestry improvements) has been made for the purposes of the business; and

(b)

the improvement is destroyed or made useless for the purpose of deriving the person’s income; and

(c)

the person would be entitled for the income year to a deduction under section DO 4 or DO 5 for expenditure on the improvement if the improvement had not been destroyed or made useless; and

(d)

the uselessness occurs in an income year that corresponds to the 2005–06 tax year or a later tax year; and

(e)

the uselessness is caused other than as a result of the action or failure to act of the person, an agent of the person, or an associated person.

Deduction: diminished value of expenditure

(2)

The person is allowed a deduction of the amount of the diminished value, for the income year, of the expenditure on the improvement plus a deduction for the amount of expenditure for removing the improvement from the land referred to in subsection (1)(a).

Link with subpart DA

(3)

This section overrides the general permission and the capital limitation. The other general limitations still apply.

Defined in this Act: business, capital limitation, deduction, diminished value, general limitation, general permission, income, income year, tax year

Compare: 2004 No 35 s DO 5B

Section DO 11(1)(b): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on 17 July 2013, by section 34(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section DO 11(1)(c): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on 17 July 2013, by section 34(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section DO 11(1)(d): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on 17 July 2013, by section 34(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section DO 11(1)(e): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on 17 July 2013, by section 34(4) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section DO 11(2): amended (with effect on 1 April 2010 and applying for the 2010–11 and later income years), on 17 July 2013, by section 34(5) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).