Hi
A client has to pay a developer contribution to the local council prior to building a property that will be rented out. Is the contribution allowable for income tax purposes against future rentals?
Thanks in advance
David
Developer contribution
3 posts • Page 1 of 1
Developer contribution
by jedbank on Thu Oct 27, 2011 11:44 am
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Re: Developer contribution
by section 44 on Sat Oct 29, 2011 9:37 am
No, it sounds capital in nature and may be allowable against any future gain.
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Re: Developer contribution
by Incredulum on Sat Oct 29, 2011 9:41 am
Agreed. Presumably this is a s106 payment? Essentially a part of the cost of construction of the property - just like the architect's fees, and nothing to do with any planned rental business.
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3 posts • Page 1 of 1
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