Meanwhile our thoughts are with those faced with putting home and business life back together. If your business has been affected by these recent extreme events, please talk to us about tax relief that may be available from Inland Revenue.
It’s highly relevant at this time that Inland Revenue is re-consulting on whether obtaining a detailed seismic assessment (DSA)detailed seismic assessment (DSA)deta on a building is a deductible cost for a business.
Where a building is identified as quake-prone the owner must assess its vulnerabilities and how to overcome them.
This starts with the DSA. Inland Revenue recognises that taxpayers need to know how their buildings are likely to cope in an earthquake.
The Inland Revenue draft looks at situations in which a DSA can be obtained. Current indications are that in most situations DSA costs will be deductible. However where DSA costs are incurred as part of a capital project to seismically strengthen, develop or improve a building, they will be capital and non-deductible. The current round of consultation on this closes on 2 December. We’ll let you know the outcome.