Capital Allowances (expenditure on refurbishment)
19/10/2000
Query
An individual incurs expenditure on refurbishment of a building to be used for student accommodation in a certain tax year. However, a Certificate of Reasonable Cost is not issued until the following tax year. Will the individual get relief for the year in which the expenditure was incurred?
Decision
Section 380D(2) provides that where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises such a person is entitled to a deduction. A house cannot be a qualifying premises unless a CRC has been issued in relation to refurbishment expenditure.
Income Tax
Section 380D, Taxes Consolidation Act, 1997
Origin: Office of the Chief Inspector of Taxes
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