Taxes Consolidation Act 1997 section 565

Expenditure reimbursed out of public money

Section 565 provides that expenditure met by government or public body grants is excluded from capital gains tax computations.

• In computing a chargeable gain or allowable loss on a disposal of an asset, no deduction may be claimed for any expenditure that has been or will be met by a grant or other public funding.
• The exclusion applies whether the expenditure is met directly or indirectly by the funding body.
• The funding bodies covered include any government, any board established by statute, and any public or local authority.
• The rule applies regardless of whether the funding body is in the State or elsewhere.