Taxes Consolidation Act 1997 section 270

Meaning of "expenditure on construction of building or structure"

Section 270 defines "refurbishment" for the purposes of industrial building allowances, specifies what types of expenditure are excluded from construction costs, and restricts the amount of qualifying expenditure under various property-based tax incentive schemes that were being phased out between 2006 and 2008.

• Refurbishment expenditure — including reconstruction, repair, renewal, and the provision of water, heating, or sewerage facilities — qualifies as construction expenditure for the purposes of industrial building allowances.
• Expenditure on site costs, machinery or plant, and items qualifying for mining or scientific research allowances is excluded from construction expenditure.
• Capital allowances on buildings covered by various property incentive schemes were restricted to 75% of expenditure attributable to 2007 and 50% of expenditure attributable to the period from 1 January 2008 to 31 July 2008.
• For certain schemes, a local authority certificate confirming that at least 15% of construction costs were incurred by 31 December 2006 was required, and the certified projected post-2006 expenditure acted as an overall cap on qualifying expenditure for the period from 1 January 2007 to 31 July 2008.

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