All Topics / Legal & Accounting / Capital Deductions

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  • Profile photo of Andy SturckeAndy Sturcke
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    @andy-sturcke
    Join Date: 2010
    Post Count: 2

    I have read that capital deductions are limited to the cost of construction and must exclude profit margin by the builder. Can anyone advise if this is correct and if yes  how does it apply in relation to constructing a new residential investment  property through a project builder. Is the builder likely to provide this information or will I need to engage a quantity surveyor when construction is complete.  

    Profile photo of Neil RichardsonNeil Richardson
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    @neil-richardson
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    Post Count: 11

    Andy

    If you engage a builder then you are able to claim the profit component as it is part of the cost of construction.

    if however, you buy a house from a builder who built it himself as a "speccy" then the profit is not claimable as the profit is not part of the cost of construction to the builder.

    Regards

    Profile photo of Andy SturckeAndy Sturcke
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    @andy-sturcke
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    Post Count: 2

    Good answer, thanks Neil

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