Enhanced deduction for eligible construction expenditure

Who may claim the relief?

A relevant person who has incurred eligible expenditure in respect of a completed development, may claim the enhanced deduction.

A relevant person is a company that is:

• a property developer
• or
• a relevant contractor.

Property Developer

A property developer is a company that develops a completed development in the course of a relevant property development trade.

A relevant property development trade is a trade that:

• is not an excepted trade
• and
• consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale.

Companies must beneficially own the completed development on the date that the Certificate of Compliance on Completion of the development is submitted to the local authority.

A property developer may claim the enhanced deduction against the profits of its relevant property development trade.

Relevant contractor

A relevant contractor is a company that:

• develops a completed development in the course of a qualifying trade under the terms of a contract with the beneficial owner of the completed development
• and
• holds a signed Relevant Declaration Form from the relevant beneficial owner.

A qualifying trade is a trade that:

• is not an excepted trade
• and
• consists wholly or mainly of the construction or refurbishment of buildings or structures.

A relevant contractor may claim the enhanced deduction against the profits of its qualifying trade.

Next: Relevant Declaration Form