Commentary

C2.1106 Compensation for damage to buildings

Capital gains tax
Capital gains tax | Commentary

C2.1106 Compensation for damage to buildings

Capital gains tax | Commentary

C2.1106 Compensation for damage to buildings

Where compensation or insurance proceeds are received in respect of damage to an asset, there is a part disposal of the owner's interest in the asset1. Where all or part of the compensation is applied in restoring the asset, the owner may claim relief by setting off the compensation against the expenditure on restoration2. This relief applies to damage to buildings, details with examples are in C2.503, C2.504.

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