519-950 Expenditure reimbursed out of public money
Expenditure is disallowed if it is reimbursed – or otherwise met directly or indirectly – by the Crown, any government, any public authority or any local authority (TCGA 1992, s. 50).
Basil purchased a hotel in November 1982 for £150,000. At the time of acquisition, he also incurred additional costs of £200,000 creating an extra bedroom block and in respect of that work received a grant of £75,000 from English Heritage. He sold the hotel for £950,000 in December 2019. The chargeable gain arising is as follows :