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Where Taxpayers and Advisers Meet

Trading Or Investment

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm
Re: Trading Or Investment

Postby bd6759 » Wed Nov 14, 2018 8:32 pm

It is also very significant that the expenditure must be ON the asset, and not on something else. My house would be worth a lot more if I knocked down my neighbours house. But the cost of doing so is not expenditure incurred on my house and is not reflected in the state of nature of my house (despite the improved views and increased value).

Spending money on architects drawings may affect the value of the property, but it is not incurred ON the property and is not reflected in the state of the asset.

Aberdeen Construction v CIR "as the result of relevant expenditure, an identifiable change for the better in the state or nature of the asset, and this must be a change distinct from the enhancement of value"


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