Taxes Consolidation Act 1997 section 276

Application of sections 272 and 274 in relation to capital expenditure on refurbishment

Section 276 provides that where capital expenditure is incurred on the refurbishment of an industrial building or structure, the tax life for allowance purposes begins from the date the refurbishment expenditure is incurred, rather than from the date the building was first used.

• Refurbishment means construction, reconstruction, repair or renewal work carried out to repair, restore or maintain a building, including the provision or improvement of water, sewerage or heating facilities.
• The writing-down period for refurbishment expenditure starts from the date the refurbishment expenditure is incurred, not from the date the building or structure was first used.
• This ensures that refurbishment expenditure qualifies for a full cycle of writing-down allowances over the building's tax life, measured from the refurbishment date.
• Where a balancing allowance or balancing charge arises, the sale or compensation proceeds must be fairly apportioned between refurbishment expenditure and original construction expenditure on a just and reasonable basis.