The Income Tax Act does not define a building or erection costs, but reliance is made on the Oxford definition. The Oxford dictionary defines a building as "a structure such as a house... that has a roof and walls". Therefore where a structure with walls and a roof has been erected, it is generally accepted that a building allowance may be claimed on the construction costs incurred. Elements like improvements, fixture and fittings, extensions, restorations are grey areas and professional advise should be obtained. Fees associated with construction like architectural fees and engineers are normally of a capital nature and even if treated differently for accounting purposes, Inland Revenue may disallow claims on these type of fees.
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