Compensation/Insurance proceeds
28/04/1997
Query
Allowability of relief under S.536(2) where a building has been destroyed..
Decision
In strictness, no relief is due as in law, the building and the land on which it stands are one asset. However, in practice, the 'old' and the 'new' buildings may be treated as distinct assets separate from the land on which they stand and relief may be allowed under S.536(2). This practice does not apply to a leasehold with less than 50 years to run.
Capital Gains Tax
Section 536, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:G130