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.
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
Good answer, thanks Neil
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